US Dollar Keeps Slipping as Markets Await Big Jobs Data
The greenback tumbled into its lowest zone in weeks on Monday, with traders tightening their positions ahead of a packed calendar of economic releases.
Why the Dollar Is Feeling the Burn
With Labor Day keeping business activity on low foot-forward, all eyes are on the August employment report. Consider the labour market releases as the real de facto trigger for the Fed’s next move.
Political Twist
A federal appeals court has just jabbed a nail into President Trump’s tariff playbook, ruling that most of his reciprocal tariffs are illegal. The Trump team gets until mid‑October to appeal – a legal cliff that could make the dollar look even shakier.
The ongoing controversy over Fed Governor Lisa Cook’s dismissal has added another layer of uncertainty. People are now worried that political interference might undermine the Fed’s independence and credibility.
Market Sentiment
Futures traders are playing the game with a high probability that the Fed will cut rates by 25 basis points in September. Still, labour data remains a wildcard.
What’s Next on the Calendar
- Tuesday: ISM Manufacturing PMI
- Followed by JOLTs job openings
- Then ISM Services PMI
- Friday: Nonfarm payrolls and unemployment rate
Bottom line: If employment data shows a drop, markets will lean into an aggressive easing narrative, dragging down yields and the dollar. Conversely, stronger numbers could dent rate‑cut bets and give the greenback a quick lift.
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