US Dollar slides on disappointing jobs data ahead of Powell’s speech

The US dollar is sliding lower following jobs data in November that missed expectations before a highly awaited speech by Fed Chair Jerome Powell. The dollar index added to earlier losses after the ADP National Employment reading indicating that US private payrolls increased far less than expected in November, suggesting demand for labour is cooling amid high interest rates.

The dollar briefly pared some losses, however, after data showed that the US economy rebounded more strongly than initially thought in the third quarter, with Gross Domestic Product increasing at a 2.9% annualized rate. Gross Domestic Product

Data is reaching a significant turning point which is welcomed by the financial markets because it cements expectation that the Fed is not only downshifting, but also triggering hopes of tightening at a slower pace.

Investors will focus on whether Powell will give any new indications that the Fed may be nearing the end of its tightening endeavour. The dollar index fell to 106.39 from a 20-year high of 114.78 on September 28 and is on track for its biggest monthly loss since September 2010.