On Tuesday, the US Dollar Index hits a new six-week low at 97.30.
The important US NFP benchmark revision report for the fiscal year ending March 2025 is anticipated by investors.
Standard Chartered Bank analysts predict that the Fed will lower interest rates by 50 basis points the following week.
The US Dollar Index (DXY), which measures the value of the US dollar relative to six other major currencies, is aiming for stability during Tuesday's European session after earlier in the day hitting a new six-week low close to 97.30.
changing labor market conditions in the United States (US) as a result of tariffs that President Donald Trump has put in place since taking office again. Employers are hiring fewer new employees, according to the US Nonfarm Payrolls (NFP) report for August, which was released on Friday. The US economy added 22,000 new workers in August, which is the lowest number since January 2021.
Bets on the Federal Reserve (Fed) cutting interest rates at its policy meeting next week have sharply increased as a result of the weakening US labor market.
While the rest predict a typical 25-bps interest rate cut, traders estimate an 11.6% possibility that the Fed would lower interest rates by 50 basis points (bps) to 3.75%-4.00%, according to the CME FedWatch tool.
The labor market has gone from being "strong in less than six weeks" to becoming "soft," according to Standard Chartered Bank analysts, who have also increased forecasts for the Fed's rate-cutting pace at next week's policy meeting from 25 basis points to 50 basis points.
Investors will be closely monitoring the NFP benchmark revision report for employment statistics through March 2025 throughout Tuesday's session. The market's expectations for the Fed's monetary policy outlook will be significantly impacted by the employment revision report.
The Fed lowered interest rates by 50 basis points in September of 2024 after the payrolls revision report revealed that the economy had created 818K fewer jobs than previously predicted.
The important US NFP benchmark revision report for the fiscal year ending March 2025 is anticipated by investors.
Standard Chartered Bank analysts predict that the Fed will lower interest rates by 50 basis points the following week.
The US Dollar Index (DXY), which measures the value of the US dollar relative to six other major currencies, is aiming for stability during Tuesday's European session after earlier in the day hitting a new six-week low close to 97.30.
changing labor market conditions in the United States (US) as a result of tariffs that President Donald Trump has put in place since taking office again. Employers are hiring fewer new employees, according to the US Nonfarm Payrolls (NFP) report for August, which was released on Friday. The US economy added 22,000 new workers in August, which is the lowest number since January 2021.
Bets on the Federal Reserve (Fed) cutting interest rates at its policy meeting next week have sharply increased as a result of the weakening US labor market.
While the rest predict a typical 25-bps interest rate cut, traders estimate an 11.6% possibility that the Fed would lower interest rates by 50 basis points (bps) to 3.75%-4.00%, according to the CME FedWatch tool.
The labor market has gone from being "strong in less than six weeks" to becoming "soft," according to Standard Chartered Bank analysts, who have also increased forecasts for the Fed's rate-cutting pace at next week's policy meeting from 25 basis points to 50 basis points.
Investors will be closely monitoring the NFP benchmark revision report for employment statistics through March 2025 throughout Tuesday's session. The market's expectations for the Fed's monetary policy outlook will be significantly impacted by the employment revision report.
The Fed lowered interest rates by 50 basis points in September of 2024 after the payrolls revision report revealed that the economy had created 818K fewer jobs than previously predicted.
