USD experienced minor losses after Powell’s forecast

On Tuesday, the DXY Index showed a decrease in gains to hover near 105.70. The Greenback is influenced by rising JOLTS figures and Jerome Powell’s comments about the inflation outlook.

The US Dollar experienced minor losses following Jerome Powell’s disinflation forecasts, with JOLTs figures from June coming in higher than expected. Expectations of interest rate cuts in September remain steady ahead of key NFPs on Friday.

Despite the US exhibiting signs of disinflation and markets anticipating a potential September rate cut, Federal Reserve officials remain cautious by adhering to their data-oriented approach. Powell showed some confidence in the inflation outlook but did not give clear signs that cuts would arrive sooner.

Job Openings and Labour Turnover Survey (JOLTS) data showed that job openings on the last business day of May totaled 8.14 million, surpassing the market’s forecast of 7.9 million. Powell’s remarks suggest wage increases are moving back down toward more sustainable levels, suggesting that the labor market is cooling off.

The week ends with a spotlight on June’s Nonfarm Payrolls on Friday, with Bloomberg’s consensus revealing an expectation of 190K versus May’s 272K, while the whisper number currently stands at 198K. Wage inflation and the Unemployment Rate will also be closely looked upon.