US Dollar Strengthens, Jobs Data Determines Market Direction
The US dollar index strengthened to around 101.3 on Wednesday (July 1), reversing the weakness seen earlier in the week. This strengthening occurred as investors awaited the US monthly jobs report for insights into the strength of the labor market and the direction of Federal Reserve policy.
The greenback also received support from rising US Treasury yields. The yield on the benchmark 10-year bond rose by around 10 basis points in the previous session, bolstering the dollar's appeal amid growing expectations of higher interest rates.
Data released on Tuesday showed US job openings rose to a two-year high in May. This indicates that labor demand remains quite resilient, although there are signs that the pace of hiring is starting to weaken.
The market now expects at least one Fed rate hike this year, with the first likely to occur in September. Meanwhile, investors are closely monitoring the US-Iran peace talks in Qatar, although the two sides are not yet expected to hold a face-to-face meeting. (asd)
Source: Newsmaker.id
