Dollar Holds Steady as Jobs Data Eyed
The dollar index hovered around 97.8 on Tuesday as investors returned from the holiday weekend and awaited crucial labor market reports this week that could shape the Federal Reserve’s policy path. Attention is on Friday’s August payrolls release, alongside unemployment, job openings, and private hiring figures.
The greenback has faced pressure recently as markets boosted bets on Fed rate cuts despite sticky inflation, with traders pricing in nearly a 90% chance of a 25 basis point reduction later this month.
San Francisco Fed President Mary Daly said Friday the central bank is prepared to ease policy given risks to the labor market, adding that tariff-driven inflation may prove temporary. Additionally, questions over Fed independence linger amid President Donald Trump’s push to remove Fed Governor Lisa Cook.
Source: Trading Economics