Dollar Rises Helped by Strong Jobs Data
The US dollar index climbed back above 99.1 on Tuesday as investors assessed a mixed batch of economic data for clues on the Federal Reserve’s interest rate outlook.
Despite the rebound, the greenback remained near a six-week low amid persistent growth concerns and uncertainty over potential US trade deals.
On the labor front, JOLTs data showed job openings unexpectedly rose to 7.39 million in April, up from March’s revised 7.2 million and well above the 7.1 million forecast—signaling continued strength in the labor market.
In contrast, factory orders fell sharply by 3.7% in April, more than expected, highlighting weakness in manufacturing. Fed officials largely support holding rates steady for now, citing trade policy uncertainty, despite pressure from President Trump for rate cuts.
Meanwhile, the OECD downgraded its global growth outlook, now projecting US GDP to expand by just 1.6% in 2025 and 1.5% in 2026, citing escalating trade tensions.
Source: Trading Economics
