Dollar Hovers Near 2-Year High
The dollar index remained near 109 on Monday (6/1), holding close to its highest levels in more than two years as investors prepare for key labor market data this week that could shape the Federal Reserve's monetary policy outlook.
The December jobs report is set for release on Friday, following the JOLTS report on Tuesday and the ADP Employment Survey on Wednesday. Additionally, several Fed officials are scheduled to speak this week, likely reaffirming their cautious approach to interest rate cuts in 2025.
Current projections suggest only two quarter-point rate cuts this year, a significant downgrade from the 100 basis points expected in September. The dollar also received support ahead of the January 20th inauguration of former President Donald Trump, as his proposed policies—such as raising tariffs, restricting immigration, and boosting economic growth—are seen as potentially inflationary. (AL)
source: Trading Economics