The USD Takes a Rough Ride While Traders Keep Their Eyes on the Horizon
Why the Greenback Is Feeling the Upset
On Thursday, the U.S. dollar slipped under pressure as investors opted for caution after a glut of disappointing economic news. It’s a bit like watching a once‑rocky road now wobble after a storm.
Why the Market’s Feeling the Chill
- ISM Services PMI slipped back into contraction for the first time in almost a year, catching many off guard.
- The ADP private payroll report blew a short laugh: only 37,000 new jobs added in May.
- Tariff‑related uncertainty is now creeping in, perhaps stalling businesses and consumer spending.
Fed Officials Step in With Gentle Guidance
Even though the data are a tad weak, the Federal Reserve’s voice could calm the frenzy. Governor Lisa Cook cautioned that tariffs might push inflation higher. Meanwhile, Atlanta Fed President Raphael Bostic urged patience and hinted at a potential rate cut later this year.
Stabilizing the Yield Curve
Because of this measured tone, U.S. Treasury yields remain steadier. The 10‑year note hovered around 4.36% after a sharp dip on Wednesday.
What’s Next for the Dollar?
With next week’s weekly jobless claims and the crucial Non‑Farm Payrolls report coming up, the dollar is likely to stay under pressure unless the data beat expectations. The market’s like a cat waiting to see if the mouse will come out—only the timing and outcome matters.
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