DOLLAR INDEX LOSES MOMENTUM AHEAD OF US JOBS REPORT

Published on Dec 05, 2024 11:28

The dollar index has been retreating so far this week, edging closer to 106 mark and coming off two year peaks registered in November. Currently, the DXY, which measures the greenback against a basket of currencies, was quoting at 106.21, down 0.08% on the day. The recent rally on the counter was triggered by Trump win in US Presidential election. However, investors seem to be booking profit after the rally which is weighing on the greenback. Meanwhile, data showed that US services sector growth slowed more than anticipated in November which increased the probability of a Federal rate cut although Jerome Powell in his speech yesterday noted the US economy is strong, with low unemployment and progress on inflation but said that despite showing progress, it�s premature to declare victory on inflation, and the US central bank could be cautious in setting monetary policy. Investors are now turning their attention to Friday�s November jobs report for further clarity into the Fed`s policy direction. Among basket currencies, EURUSD and GBPUSD are quoting higher by around 0.10% at $1.0530 and $1.2712 respectively.