The US Dollar remains under pressure ahead of the jobs report – BBH

July 6, 2024 3:05 am

The Dollar Index (DXY) is trading lower near 105. EUR/USD is trading higher near $1.0825. USD/JPY is trading lower near 160.80, BBH FX strategists note.

Friday jobs report is key for global markets

“DXY is trading lower for the fourth straight day just below 105 as weak data and less hawkish Federal Reserve (Fed/FOMC) minutes take a toll. EUR/USD is trading higher near $1.0825 despite weak data, while the Pound Sterling is trading higher near $1.2790 after Labour’s landslide win. USD/JPY is trading lower near 160.80 after the 162 level held earlier this week.” 

“Recent soft data are challenging our view that the backdrop of persistent inflation and robust growth in the U.S. remains largely in place, which has also led Fed officials to voice more concern about the economy.” 

“Still, we note that weaker data in many of the major economies underscore the economic and monetary policy divergences that should continue to support the dollar. Today’s jobs report will be key for global markets.”

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