Dollar index pulls back as markets eye nonfarm data

Published on Aug 04, 2023 14:16

The US Dollar index fell from a three week high near 102.70 yesterday and drifted lower today, adding to the latest losses as markets eyed the release of the US nonfarm payrolls data for July The last month`s update has reflected a tepid picture for the US jobs growth coming in at 209,000, marking a sharp drop from May`s downwardly revised total of 306,000 and was the slowest month for job creation since payrolls fell by 268,000 in December 2020. The unemployment rate declined 0.1 percentage point though. The today`s data will likely trigger some heavy volatility in the US dollar as a further moderation in jobs growth could see the index tilt further lower on ideas that the US Fed may be close to a shift in its current monetary policy narrative.