US Dollar Stable, Market Awaits June Jobs Data
The US dollar index moved relatively stable around 101.4 in trading on Thursday (July 2). This movement occurred after the dollar experienced high volatility in the previous session, while investors awaited the June US jobs report.
This data will be an important indicator of labor market conditions and the direction of Federal Reserve policy. The market is eager to see whether the hiring slowdown is becoming more apparent or whether the US economy remains strong enough to support a high interest rate policy.
Data released on Wednesday showed US private sector hiring slowed more than expected last month. Furthermore, Fed Chairman Kevin Warsh said inflation expectations have eased in the past month, so there is no immediate urgency to raise interest rates.
However, Warsh reiterated the central bank's commitment to restoring price stability. The market also still expects a more than 60% chance that the Fed will raise interest rates in September.
The US dollar held firm despite increased oil shipments through the Strait of Hormuz and progress in indirect US-Iran talks. These conditions put downward pressure on oil prices and helped ease inflation concerns, but were not strong enough to significantly weaken the greenback. (asd)
Source: Newsmaker.id
