The post US Dollar plunges on soft NFPs from July appeared on BitcoinEthereumNews.com.

US Dollar suffers following July’s disappointing jobs report, which sparks increased expectation in September rate cut. If data continues to show progress, the Fed signals readiness to respond to signs of weakness in the US economy. CME FedWatchTool indicates a 90% chance of a cut in September. The US Dollar (USD), as gauged by the DXY index, experienced heavy selling pressure following the July jobs report on Friday, sliding to lows not seen since March near 103.20. With a September rate cut seemingly in sight, any signs of vulnerability in the US economic landscape could weigh on the USD and increase dovish sentiment toward the Federal Reserve (Fed). Daily digest market movers: The US Dollar dips on July’s weak jobs growth US Nonfarm Payrolls (NFP) grew by just 114K in July, falling short of the market expectation of 175K and significantly below June’s downwardly revised growth of 179K (from 206K), according to the US Bureau of Labor Statistics (BLS) report on Friday. Additional figures from the report showed that the Unemployment Rate inched up to 4.3% in July from 4.1% in June. Concurrently, Average Hourly Earnings’ annual wage inflation decreased to 3.6% from 3.8%. The weak demand for labor in the US, underscored by these figures, has piled pressure on the USD, increasing expectations that the Fed will start to cut interest rates in September. The CME FedWatch Tool now shows that traders predict a 90% chance of a half-point Fed rate cut in September. DXY technical outlook: Index outlook turns bearish amid concerning data The DXY outlook has taken a turn for the worse after the disappointing jobs report. The index slid significantly below both the 20-day and 200-day Simple Moving Averages (SMAs), which are on the brink of a bearish crossover near 104.00. The momentum-based Relative Strength Index…

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Filed under: News - @ August 3, 2024 6:24 pm