Dollar Dips Ahead of Key Jobs Data

6 Sep 2024 , 10:58 AM

The US dollar fell near a one-week low against major peers on Friday, with labour market indicators offering conflicting signals ahead of critical monthly payrolls data later in the day, which is nearly certain to determine the pace for Federal Reserve policy easing.

The dollar index, which measures the currency against a basket of six significant rivals, remained unchanged at 101.03, after falling roughly 0.2% overnight and reaching 100.96 for the first time since August 29. It has declined by about 0.7% this week.

According to a study released on Thursday, the number of Americans filing new claims for unemployment benefits fell last week as layoffs remained low. That helped calm concerns that the labour market was worsening swiftly, after data released the day before showed private job growth fell to a three-and-a-half-year low in August.

The contradictory data left markets guessing ahead of Friday’s payrolls report, with economists polled by Reuters forecasting an increase of 165,000 jobs in August, up from 114,000 in July.

What the Fed does with the figures will be almost instantly evident, with Governor Christopher Waller and New York Fed President John Williams each taking the platform in the final Fedspeak before the blackout period begins ahead of this month’s policy meeting.

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