Gloomy data on U.S. job openings•Pessimistic comments by a member of the Federal Reserve•Prospects of a U.S. interest rate cut up by about 50 basis points
The US dollar fell in the European market on Thursday against a basket of major and minor currencies, extending its losses for the second consecutive day, moving away from the highest level in two weeks, to continue moving in negative territory, ahead of the release of important data on private sector jobs in the United States, weekly jobless claims and the US services sector.
Investors are waiting for more evidence about the likelihood that the Federal Reserve will cut US interest rates by about 50 basis points during the September meeting, waiting for the most important data in the August jobs report due to be released on Friday.
Price outlook • US Dollar Index Price Today: The dollar index fell by 0.15% to (101.14) points, from the opening level of today’s trading at (101.28) points, and recorded the highest level at (101.35).
• The index ended Wednesday’s trading down by 0.5%, due to corrections and profit-taking, after recording the previous day a two-week high of 101.92 points.
Beyond selling to reserve profits, greenback levels fell after gloomy data on job openings in the United States.
Data released on Wednesday showed that U.S. jobs fell in July to a three-and-a-half-year low, suggesting the U.S. labor market has lost momentum.
Wells Fargo’s economists said in a note: July’s job opportunities data showed little sign of an end to the ongoing slowdown in the U.S. labor market.
Experts added: For the Federal Reserve, the data confirms that the labor market is no longer a source of inflationary pressures on the US economy.
Pessimistic commentsSan Francisco Federal Reserve President Mary Daly said lowering interest rates is necessary to keep the labor market healthy.
US interest • Following the above data and comments According to CME Group’s FeedWatch: the pricing of US interest rate cut probabilities increased by about 50 basis points at the September meeting from 41% to 45%, and the pricing of cut prospects fell by about 25 basis points from 59% to 55%.
In order to re-price the above possibilities, investors are awaiting the release of important data on private sector jobs in the United States, weekly jobless claims, and the performance of the US services sector in August.
By 13:15 GMT, the ADP index measuring new jobs in the private sector in the United States is expected to add 144,000 new jobs in August, compared to 122,000 jobs added in July.
By 13:30 GMT, weekly jobless claims are projected at 230,000 in the week to Aug. 31 from 231,000 the previous week.
Read also :Does a continued decline of the dollar mean its collapse? JPMorgan answers.
By 15:00 GMT, the expected ISI index would be 51.3 points in August from 51.4 in July.
Expectations about the performance of the US dollar• We expect here in the site ‘FX News Today’: If the US economic data is worse than market expectations, the odds of a US interest rate cut will rise by about 50 basis points in September, which will exacerbate the dollar’s losses
