US Dollar Index Edges Lower; Non-Farms Awaited

Published on Jun 06, 2024 11:52

The US dollar edged lower following US data that revisited possibility of a rate cut this year. ADP reported that private sector employment in the US rose by 152K in May as compared to 173K anticipated and the previous month`s downwardly revised reading of 188K indicating a softening labor market. ISM Services PMI, however, rose to 53.8 in May, registering its highest level since August and surpassing consensus estimates of 50.8. All eyes are now on upcoming non-farms data for further cues on Federal stance. ECB monetary policy decision due later today will also be watched carefully. US treasury yields fell to 4.3% and dollar index edged lower towards 104 mark at 104.15, down 0.07% on the day. Among the basket currencies, EURUSD and GBPUSD are quoting marginally higher at $1.0890 and $1.2795 respectively.