US dollar is down slightly in response to Jerome Powell’s disinflationary expectations.
The US Dollar fell on Tuesday, hovering about 105.70, according to the DXY Index. Rising JOLTS numbers and Jerome Powell’s comments on the inflation forecast have influenced the greenback.
Although the United States is showing symptoms of disinflation. And the markets anticipate a September rate decrease, Federal Reserve (Fed) officials remain cautious by sticking to their data-driven strategy. Jerome Powell expressed some confidence in the inflation outlook. But did not provide convincing signals that reduction would Arrive sooner.
Daily Market movers: US Dollar reduces gains despite strong JOLTS data.
The US Bureau of Labor Statistics (BLS) released the Job opportunities and Labor Turnover Survey (JOLTS) on Tuesday, revealing that there were 8.14 million job opportunities on the final business day of May.
This was a big increase from April’s 7.9 million (updated from 8.05 million) and exceeded the market’s forecast of 7.9 million.
Powell mentioned that wage rises are slowing to more sustainable levels, implying that the labor market is cooling.
Furthermore, he stated that “inflation may get back to 2% late next year or the following year,” implying a slower-than-expected inflation pace.
The week culminates with a focus on June’s Nonfarm payrolls are due on Friday. Bloomberg’s consensus predicts 190K versus 272K in May, with the whisper number now at 198K. Wage inflation and unemployment rate will also be regularly monitored.
