Dollar plumbs six-month low ahead of US payrolls data

Economies.com
2022-12-02 11:33AM UTC

Dollar fell in European trade for the third straight session against a basket of major rivals, plumbing six-month lows and on track for second weekly losses, after Fed Chair Jerome Powell's testimony, which bolstered the case for a 0.5% rate hike in December. 

 

Investors await important official US payrolls data later today for November, which will provide fresh clues on growth.

 

The Index

 

The dollar index fell over 0.4% to 104.37, the lowest since June, with a session-high at 104.87, after closing down 1.1% yesterday, the second loss in a row, and the largest since November 11. 

 

The dollar index is down 1.6% so far this week, on track for the second weekly loss in a row. 

 

Powell

 

Fed Chair Jerome Powell said the pace of rate hikes will be slowed down starting from the December meeting as the bank rebalances its risks.

 

However he cautioned that monetary policies will remain tight for the time being until inflation is brought back to normality.

 

Following the remarks, markets now put an 80% chance of a 0.5% rate hike by the Fed in December, and a 20% only for a 0.75% rate hike.

 

Data

 

Now investors await for important US data on the labor sector to gauge the performance of the economy in this quarter.

 

US non-farm payrolls are expected up 200 thousand in November, down from 261 thousand in October, while unemployment are expected at 3.7% with no change.

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