Dollar Index Seen Regaining Some Lost Momentum Near 2-Month Lows

Published on Jun 05, 2024 12:34

The US dollar is seen regaining some of its lost momentum on Wednesday morning in Asia despite signs of cooling labor market that supports the disinflation process. Yesterday, Job Openings and Labor Turnover Survey, or JOLTS report, showed that job openings fell more than expected, by 296K to 8.059 million in April, or the lowest in more than three years. US ISM Manufacturing PMI report released on Monday also pointed to weakening factory activity, reigniting hopes for Federal Reserve interest rate cuts. The crucial US monthly employment details, or the Nonfarm Payrolls (NFP) report on Friday is keenly awaited for clearer direction to the dollar. The dollar index futures however continue to linger around a two-month low at 104.23, but up 0.17% on the day. Meanwhile, among the basket currencies, EURUSD and GBPUSD are quoting slightly lower at $1.0882 and $1.2770 respectively.