Dollar Trades Weaker, Could Get Further Hit by NFP Today - Forex News by FX Leaders

Dollar Trades Weaker, Could Get Further Hit by NFP Today

Posted Friday, June 7, 2019 by
Arslan Butt • 1 min read

Ahead of the NFP release on Friday, the US dollar index remained weak and looks set for its worst performing week since March 2019. Expectations are that the NFP figures releasing today would reveal a drop and support the likelihood for a rate cut by the Fed soon.

After the weaker than expected employment figures released by the ADP a couple of days ago, markets are anticipating a possible slowdown in the US labor market. This data, coming at a time when uncertainties remain high over ongoing trade tensions, could weaken the dollar further.

Already, investors are pricing in a more than 50% chance of a Fed rate cut by 25bp by the end of July and another rate cut before the end of 2019. At the time of writing, DXY is trading at around 97.06, around 0.3% higher than the eight-week low it touched on Wednesday.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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