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Dollar eases ahead of US nonfarm payrolls, ECB and BoE eyed
The US Dollar Index was last at 99.76 after rejecting 101.52, while eurozone and UK data due soon are expected to add to rate outlook signals.
The US dollar remained choppy ahead of the US nonfarm payrolls report, viewed as the final major catalyst before markets reassess the Federal Reserve’s policy path. Yahoo Finance notes that traders are focused on how NFP could influence expectations for the US labor market and, in turn, whether the Fed adopts a more accommodating stance later this year.
According to Yahoo Finance, the dollar was stabilizing after the European Central Bank meeting, where the ECB kept its main interest rate on overnight deposits at 2.25% and reiterated a data dependent approach. Investors are also turning to upcoming eurozone indicators, including German industrial production and eurozone retail sales, to judge whether domestic demand is recovering.
In the UK, sterling is digesting the Bank of England decision to leave Bank Rate at 3.75%. Yahoo Finance says traders are watching data on the labor market, consumer spending, and business activity to assess whether easing inflation is sustainable without a sharper slowdown in growth.