Dollar slumps to 3-month low ahead of US jobs data

The US dollar fell on Tuesday, hitting a 3-month low, and deepening its losses for the seventh straight day, as demand slowed and risk appetite improved, in addition to fears over the protests and riot in the US, which comes ahead of key data releases that provide insight on the performance of the US economy after easing the coronavirus lockdown.

The dollar index fell 0.3% to the lowest since March 12 at 97.29 points, after opening at 97.57, and hit an intraday high of 97.63.

The greenback lost 0.15% yesterday, its sixth daily loss, as demand slowed due to the escalation of protests and riot in the US.

Most global stock markets continued to rally, as investors sentiment improved thanks to the continued major economies reopening measures and relaxing the coronavirus-lockdown, and hopes for a quick global economic recovery from the coronavirus impact, in addition to  strong Chinese services data. 

US President Donald Trump has threatened to deploy the military to stop the riots and protests across the US, which have broke out to denounce racism and police brutality, and the Pentagon confirmed the deploying about 1,600 soldiers in the Washington after several nights of riots.

Large-scale protests and riots across the US escalated after the killing of the American citizen, George Floyd, who died in the Minneapolis police custody, after a white cop put him on the ground under his knee for about 9 minutes.

Should the protests and riot continue for a longer time, it's expected to weigh down further on the battered US economy that already suffers from the coronavirus impact.

Investors are anticipating key economic data releases today on the US  private sector jobs and the services sector, which will deliver insight on the performance of the US economy after easing the coronavirus lockdown.

At 12:15 GMT, the US economy will release its reading for the ADP Non-Farm employment change, with forecasts of losing 9 million in May vs. 20.236 jobs lost in April. 

At 14:00 GMT, the ISM services PMI is expected to rise to 44.2 points in May vs. 41.8 points in April.