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Dollar index holds near 99.80 ahead of US data

The US Dollar Index is trading marginally lower as markets look to ADP payrolls and the ISM Services PMI for July, which could shift Fed rate expectations for September.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, which tracks the greenback versus six major currencies, is trading marginally lower and near 99.80 ahead of key US data releases. Investors are turning to the ADP Employment Change and the ISM Services Purchasing Managers’ Index for July in the North American session.

FXStreet notes that expectations are for ADP to show an increase of 70K private-sector payrolls, down from 98K in June, while the ISM Services PMI is forecast to rise to 54.5 from 54.0. The next economic prints are expected to matter for Federal Reserve interest rate expectations after policymakers moved away from “forward-guidance.”

The CME FedWatch tool shows a 56.7% chance the Fed will raise interest rates at the September policy meeting. Separately, investors are also watching talks between the US and Iran over the Strait of Hormuz, with Washington saying it could reach an agreement within two days, a development that could ease oil supply disruptions and influence inflation expectations.

Latest closeDollar index 99.88 ▼0.1%

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