CXSE - The Dollar Remains Soft Ahead Of The Employment Report
2024-06-07 07:50:35 ET
Summary
- The dollar is little changed against the major currencies ahead of the US jobs report.
- The odds of two Fed cuts this year are now near 90%, double a week ago.
- US index futures are little changed now and are up 2.0%-2.5% this week.
Overview
The dollar ([[DXY]], [[USDOLLAR]]) is little changed against the major currencies ahead of the US jobs report. It has been trading heavier than we expected, given that two more G10 central banks cut interest rates ahead of the Federal Reserve. Next week is its meeting and the market-sensitive CPI. US rates have fallen, and as we note below, the US two-year premium over Germany is at its lowest in nearly three months. The euro is about 0.4% higher on the week ahead of the US data. The odds of two Fed cuts this year are now near 90%, double a week ago. Only the Canadian dollar and Norwegian krone among the G10 have not risen against the greenback so far this week. Falling US bond yields helped lift the yen by over 1%, for its best week since intervention in early May. A larger-than-expected Chinese trade surplus and may have helped the Chinese yuan today, but this week, like last week, it is virtually unchanged. The Mexican peso has stabilized after yesterday's sharp drop....
The Dollar Remains Soft Ahead Of The Employment Report