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Dollar slips as weaker data and lower oil lift rate-cut hopes
The dollar index fell 0.1% after June factory orders dropped 0.3% month over month and JOLTS job openings fell to 7.359 million.
The US dollar came under pressure, with the dollar index down 0.1% as stocks rose and crude oil prices fell sharply, helping push down inflation expectations and raise the odds of more accommodative Federal Reserve policy. Yahoo Finance pointed to hopes for a deal to reopen the Strait of Hormuz as one factor behind the move in crude.
Weaker-than-expected US economic reports also weighed on the greenback. June JOLTS job openings fell by 178,000 to 7.359 million, and June factory orders declined 0.3% month over month, with factory orders excluding transportation down 0.4%.
The data also included a larger-than-expected trade deficit, with the US June gap at minus $73.3 billion versus minus $73.0 billion expected. Markets were pricing a 59.0% probability of a 25 basis point rate hike at the next FOMC meeting on September 15 to 16.
Against major currencies, the euro rose 0.2% and the yen gained 0.2%, supported by the drop in oil prices, which can reduce import costs. Yahoo Finance also noted that the markets were pricing an 85.0% chance of a 25 basis point rate hike by the ECB on September 10, while lower Treasury yields helped limit the yen's losses.
Latest closeWTI crude $95.27 ▲3.4%|Dollar index 101.29 ▲0.2%