Dollar Steady After Pressure from Jobs Data and Trump's Actions
The US dollar held steady on Monday after a sharp decline late last week following disappointing US employment data and President Donald Trump's abrupt dismissal of a top statistician. July's nonfarm payrolls data showed job growth far below expectations, with significant revisions to the previous two months' data. This situation fueled strong speculation that the Federal Reserve would cut interest rates soon, possibly starting in September.
The pressure on the dollar deepened when Trump fired Erika McEntarfer, the head of the Bureau of Labor Statistics, and criticized her for allegedly "faking the numbers." This move exacerbated market uncertainty, compounded by the resignation of Fed Chair Adriana Kugler, which gives Trump an opportunity to exert more influence on the central bank's board. Market participants now estimate a greater than 95% chance of a rate cut next month.
Despite falling more than 2% against the yen and 1.5% against the euro on Friday, the US dollar managed to gain slightly at the start of the week. Against the yen, the dollar rose 0.14% to 147.60, while against the euro and pound, it also strengthened slightly. US bond yields fell sharply, reflecting increased bets on the Fed's monetary policy easing amid growing economic concerns.
Meanwhile, the Australian and New Zealand dollars weakened against the greenback, and the Swiss franc held steady after coming under pressure from Trump's high tariffs on Switzerland. Industry associations in the country warned that tens of thousands of jobs could be at risk if this trade policy continues. The market's swift reaction demonstrates the high sensitivity to economic policy and controversial measures from the White House. (ayu)
Source: Newsmaker.id
