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Dollar index softens near 99.65 as traders await US jobs data

The DXY is close to its lowest level since June 17 as Middle East shipping and Iran crisis developments, plus cooled rate-hike bets, weigh on the dollar.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, which tracks the greenback against a basket of currencies, is trading with a negative bias for a third straight day and is hovering around 99.65 during the Asian session, according to FXStreet.

The index is close to its lowest level since June 17, with traders waiting for further Middle East developments and key US monthly jobs data due Friday. Expectations have also been tempered by US economic releases, including an ADP report showing private-sector employment gains of 44K in July, down from 98K in the prior month, and a US ISM Services PMI that came in at 54.1 for July, slightly above June but below forecasts.

FXStreet also pointed to progress and uncertainty around the US-Iran situation, noting Iran and Oman are close to finalizing a proposed commercial shipping framework through the Strait of Hormuz. At the same time, Yemen-based Houthis said they launched missile attacks on a Saudi oil tanker off Yanbu and another in the Gulf of Aden, which prompted a modest bounce in crude oil prices and kept inflation and Fed-hike concerns in view.

With nonfarm payrolls (NFP) still ahead, traders may wait for new cues on the Fed’s policy path to guide the DXY’s near-term direction. On technicals, the spot index is around 99.66 and holds a bearish near-term bias below the 50-day simple moving average near 100.55, FXStreet said.

Latest closeWTI crude $75.12 ▼0.9%|Dollar index 99.69 ▼0.2%

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