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Dollar Set for Weekly Loss
Yes, that’s correct. The dollar is set for a weekly loss as it heads into a pivotal monthly US jobs report likely to inform the path for Federal Reserve policy over coming months.
The dollar index, which trials the currency against a basket of six developed-market peers, is down about 0.5% this week. It is on track to snap a six-week winning streak.
Dollar has been Driven by a Combination of Factors
- Soft economic data from the US. Several recent financial reports have been weaker than expected, raising concerns about the strength of the US economy.
- They are falling Treasury yields. US Treasury yields have declined this week, which has made the dollar less attractive to investors.
- The upcoming US jobs report. The nonfarm payrolls report for August is due to be released on Friday. A strong jobs report could boost the dollar, while a weak report could weigh the currency.
The Federal Reserve is expected to raise interest rates in September, but the pace of future rate hikes will depend on the strength of the US economy. A strong jobs report could lead the Fed to raise rates more aggressively, while a weak report could prompt the Fed to slow down its tightening cycle.
Overall, the dollar will likely remain volatile in the near term as investors await the upcoming US jobs report and assess the outlook for the US economy.
Read More Here: https://www.republicworld.com/business-news/international-business/dollar-set-for-weekly-loss-as-crucial-us-jobs-data-looms-articleshow.html
