DXY Calms Ahead of Jobs Data
The US dollar index moved steadily at the start of the week (June 29), with the US Dollar Index (DXY) hovering around 101.35. This relatively flat movement occurred as investors began to hold positions ahead of the release of US jobs data, particularly the June Nonfarm Payrolls (NFP).
The NFP data, due to be released on Thursday, is a key market focus as it could provide new clues regarding the direction of the Federal Reserve's monetary policy. Market participants are eager to see whether US employment conditions remain strong or are beginning to weaken. The results of this data will significantly influence interest rate expectations, especially as the market expects a strong chance that the Fed will raise rates at least once this year.
Focus on economic data has intensified following statements by Fed Chairman Kevin Warsh, who signaled that the central bank will reduce its forward guidance. In other words, the Fed is likely to rely more on recent data before determining policy action. In addition to the NFP, the market will also be closely monitoring JOLTS Job Openings, the ISM Manufacturing PMI, and the ISM Services PMI this week.
Globally, investors are also monitoring developments in talks between the United States and Iran in Qatar. The two countries reportedly agreed to halt attacks following days of tensions around the Strait of Hormuz, a vital route for about a fifth of global energy flows. If the talks progress positively, geopolitical tensions could ease, but if they escalate, volatility in the dollar, oil, and gold could potentially increase. (asd)*
Source: Newsmaker.id
