Posted 4/5/2024, 11:32:24 AM
Dollar Steady Ahead of Jobs Data; Rate Cut Bets Diverge Between Fed and ECB
- The US Dollar Index (DXY) is trading quietly as traders await the release of important US economic data like the jobs report.
- The upcoming US Nonfarm Payrolls report could cause volatility in the DXY if the figures impact rate hike expectations.
- Some Fed policymakers have recently signaled less conviction on cutting rates amid high inflation.
- In contrast, the ECB still appears poised to cut rates in June, weighing on the Euro and supporting the DXY.
- Wage data prior to the June ECB meeting will help determine whether the central bank cuts rates.