US Dollar Holds Slight Gains After Disappointing ADP Data
The US Dollar Index edged higher to 98.3 on Thursday, but remained weak overall. Investors are weighing weak economic data and its impact on the Federal Reserve's monetary policy direction.
The latest ADP report showed the private sector added only 54,000 jobs in August, down sharply from July's revised 106,000 and well below expectations of 65,000. This figure indicates a clear slowdown in the US labor market.
Other data this week added to concerns. Job openings fell to 7.18 million in July, the lowest level since September 2024, while factory orders weakened for the second straight month. These conditions further strengthen the signs of a cooling economy.
The market is now almost certain that the Fed will cut interest rates by 25 basis points this month. Investors' next focus is on Friday's nonfarm payrolls report, which is seen as key to determining short-term market direction.
Source: Newsmaker.id