Dollar trades near two-month lows ahead of US unemployment claims data

The dollar fell in European trade on Thursday against a basket of major rivals, resuming losses and approaching two-month lows once more as US 10-year treasury yields slowed down.

Now investors await US unemployment claims data today, and the crucial payrolls report tomorrow to gather more clues on the economy.

The Price 

The dollar index fell 0.2% today to 104.05, with a session-high at 104.30. 

The index closed up 0.15% yesterday away from two-month lows at 103.99.

US Yields 

US 10-year treasury yields traded near two-month lows at 4.275%, in turn boosting non-yielding assets. 

Across this week, a string of weak US data underpinned the odds of multiple Fed rate cuts in 2024.

Grim Data

Recent US data showed the US manufacturing sector and construction spending fell sharply in May.

Also US job opportunities showed a noticeable decline in April as tight labor conditions eased.

And finally, the US private sector added less jobs than expected in May. 

US Rates 

Following the data, the odds of a Fed 0.25% rate cut in September rose to 67%, and the odds of such a cut in November rose to 80%.

Fresh Data

Now investors await important US unemployment claims data and the payrolls report for May to help determine the likely path ahead for monetary policies.