US Dollar Drops Below Key Level as Weak Job Market Data Stokes Bets on Fed Rate Cuts
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The US Dollar (DXY) is declining, trading near 103.05, due to soft labor market data outweighing strong ISM figures.
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Markets are digesting Fed Chair Powell's comments reinforcing a March rate cut is unlikely, though decisions remain data-dependent.
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Initial Jobless Claims rose higher than expected to 224K, fueling bets on Fed easing cycle potentially starting in May.
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The DXY dropping below its 200-day SMA points to dominant selling momentum in the longer term.
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Friday's jobs report could further pressure the US Dollar if it comes in weaker than forecast.