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Dollar steadies after Lebanon strike as investors await US jobs data

The dollar index DXY traded near 99.80 after the Israeli airstrike, while ADP payroll growth slowed to 44,000 in July.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, or DXY, which tracks the greenback against six major currencies, held on to gains after two straight sessions of losses and traded around 99.80 in the European session Thursday, according to FXStreet.

FXStreet linked the rebound in the dollar to safe haven demand after an Israeli airstrike in southern Lebanon, which the report said killed one person and injured 11. The article also noted the dollar could face headwinds as markets digest a pending maritime agreement between Iran and Oman that would create a temporary two to four month shipping route through the Strait of Hormuz.

On the US data front, the session delivered mixed results, with ADP private-sector payrolls rising by 44,000 in July, down sharply from June’s revised 95,000, and below the 70,000 consensus forecast. The ISM Services PMI edged up to 54.1 from 54.0, though it was still below the 54.5 expectation.

FXStreet said attention now turns to Thursday’s Initial Jobless Claims and Friday’s Nonfarm Payrolls report. It also cited Deutsche Bank commentary that the dollar’s recent softening has come with only a modest move in rates, alongside shifting expectations around a potential September Fed rate cut.

Latest closeDollar index 99.69 ▼0.2%

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