"The US dollar held steady on Friday, hovering near two-week highs and on track to close the week in positive territory. The currency strengthened in recent sessions, supported by the nomination of Kevin Warsh as the next Federal Reserve chair, a series of upside surprises in manufacturing and services PMIs, and cautious rhetoric from some Fed officials. However, the supportive backdrop has been challenged by a deterioration in labour market indicators."
"Initial jobless claims rose last week, overshooting expectations, while continuing claims also moved higher. JOLTs job openings fell to their lowest level since 2020, and announced layoffs surged. Looking ahead, attention turns to the preliminary University of Michigan consumer sentiment reading later today, while next week's nonfarm payrolls report is likely to be a key catalyst for both yields and the dollar."
The US dollar held steady near two-week highs and was set to finish the week positive. The currency strengthened after Kevin Warsh's nomination as Federal Reserve chair, upside surprises in manufacturing and services PMIs, and cautious Fed rhetoric. Labour-market indicators showed deterioration: initial jobless claims rose, continuing claims increased, JOLTs job openings fell to their lowest since 2020, and announced layoffs surged. Those labour developments slightly reduced expectations for aggressive monetary tightening and placed modest downward pressure on the dollar. Market attention now focuses on the preliminary University of Michigan consumer sentiment reading and next week's nonfarm payrolls report as potential catalysts.
Read at London Business News | Londonlovesbusiness.com
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