The dollar index, which tracks the greenback against six major currencies, fell to 102.90, its lowest level since July 24, 2023. The euro rose to $1.1070, its highest level since July 20, 2023, while the yen touched a 10-month high of 145.00. The dollar’s weakness was driven by a mixed bag of economic data, with the U.S.
19, while the market is pricing in a 25-bp rate cut on the same day. The Fed’s decision to cut rates will be influenced by a number of factors, including the latest inflation data, employment figures, and the overall economic outlook. The Fed will be particularly interested in the latest CPI data, which is expected to show a slowdown in inflation. The Fed’s preferred measure of inflation, the Personal Consumption Expenditures (PCE) price index, is also expected to show a slowdown. The Fed will also be looking at the latest employment figures, which are expected to show continued job growth.
* The US economy is showing signs of resilience, with job growth remaining strong despite rising interest rates. * The US Bureau of Labor Statistics (BLS) reported that the US economy added 187,000 jobs in July, exceeding expectations. * The strong job growth is attributed to the continued strength of the labor market, with low unemployment rates and high wage growth. * The Federal Reserve (Fed) is expected to cut interest rates this month, as the economy is showing signs of resilience.