The greenback have slipped nearly by 1% against a basket of major currency pairs after the release of weak U.S jobs data which scaled back investors’ expectation on how much further that the Fed would need to increase rates.According to the data released by U.S Bureau of Labor Statistics, the U.S economy only added 209k …
The greenback have slipped nearly by 1% against a basket of major currency pairs after the release of weak U.S jobs data which scaled back investors’ expectation on how much further that the Fed would need to increase rates.
According to the data released by U.S Bureau of Labor Statistics, the U.S economy only added 209k jobs in June, marking it the fewest job increase in 2-1/2 years while investors expected an increase of 225k. On top of that, an increase in number of individuals who are working part-time due to economic reasons also hinted cooling jobs market. This is the first time in 15 months that the payrolls have missed market expectation.
With the weak data coupled with signs of slowing inflation have fueled speculation that the Fed may soften its hawkish stance sooner than later. However, the overall market remains positive in the eyes of Fed officials. Dallas Fed chief. Lorie Logan recently stated that more hikes are needed in order to slow down inflation and adding that “two-thirds of FOMC participants have expected at least two more rate hike for this year.”
Meanwhile, investors are heading for the sidelines and reduce their bets while awaiting the release of the latest U.S inflation data which is due on Wednesday to anticipate the potential direction of the U.S economy.
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