US dollar struggles amid weak labour market data

Following steep losses on Monday as a result of the unsatisfactory May ISM PMIs, the US dollar secured some gains although JOLTS for April revealed fewer job openings than anticipated. Despite struggling, the US Dollar Index is 0.04% up, trading at 104.09 at the time of writing.

In order to gain further insight into the Fed’s policy outlook, markets are awaiting the release of the Nonfarm Payrolls report and wage growth data.Despite weak labour market data released by the US Bureau of Labour Statistics on Tuesday, the US Dollar Index (DXY) showed modest surge.

The dismal Institute for Supply Management (ISM) PMI data for May, which had been driving the bearish market environment, seemed to have stabilised.The market appears to be growing concerned about a declining US economy that could prompt the Federal Reserve to cut rates sooner.

Market attention has now shifted to additional labour market data that will include ADP Employment Change figures, Nonfarm Payrolls, Wage inflation, and Unemployment data for May, which will give additional insights into the US economy.