On Tuesday, the US Dollar (USD) saw continued selling pressure as short-dated US rates decreased. Speculation is growing over the release of benchmark revisions to US jobs data, which could have a significant impact on the currency market, according to ING’s FX strategist Chris Turned.
DXY Could Drop to 101.00 Level
Today, the Bureau of Labour Statistics will release revisions to employment growth data using more accurate tax records for the year up to March 2024. Estimates suggest that job gains during that period could be reduced by up to 1,000,000. If this is the case, the Federal Reserve may have previously perceived the jobs market as too tight, potentially underestimating the upcoming economic slack. This data, set to be released at 1600CET, poses a downside risk to the USD.
Later in the day, the Federal Reserve will release the minutes of the FOMC meeting held on July 31st. This meeting marked a shift in the Fed’s focus to its dual mandate. The minutes may reveal discussions on the Fed’s comfort with inflation levels but concerns about employment.
The selling pressure on the DXY is gaining momentum as traders anticipate a potential shift in the market. Keep an eye on how it performs around the key 101.00 level.
Analysis:
The US Dollar is facing challenges due to potential revisions in jobs data, which could impact the currency market. The Federal Reserve’s focus on its dual mandate and concerns about employment levels are contributing to the USD’s decline. Traders are closely watching the DXY’s performance around the 101.00 level for potential market trends. Stay informed to make informed decisions about your finances.