{"id":118286,"date":"2025-09-01T11:34:33","date_gmt":"2025-09-01T07:34:33","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118286"},"modified":"2025-09-01T11:34:37","modified_gmt":"2025-09-01T07:34:37","slug":"dollar-slips-ahead-of-key-u-s-jobs-data-fed-independence-concerns-linger","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-slips-ahead-of-key-u-s-jobs-data-fed-independence-concerns-linger\/09\/01\/market-updates\/","title":{"rendered":"Dollar Slips Ahead of Key U.S. Jobs Data; Fed Independence Concerns Linger"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The U.S. dollar weakened on Monday as investors turned their attention to a busy week of labor market data that could determine the size of an anticipated <strong>Federal Reserve rate cut<\/strong> later this month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dollar Under Pressure<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The dollar eased <strong>0.04% against the yen<\/strong> to <strong>146.98<\/strong>, extending a <strong>2.5% monthly decline<\/strong> versus the Japanese currency in August.<\/li>\n\n\n\n<li>The euro rose <strong>0.25% to $1.1710<\/strong>, while sterling gained <strong>0.14% to $1.3522<\/strong>.<\/li>\n\n\n\n<li>Against a basket of currencies, the <strong>dollar index slipped 0.15% to 97.69<\/strong>, after logging a <strong>2.2% decline in August<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>Trading was thin with U.S. markets closed for a public holiday.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Labor Market Data in Focus<\/h3>\n\n\n\n<p>This week\u2019s spotlight is on the <strong>U.S. nonfarm payrolls report due Friday<\/strong>, preceded by job openings and private payrolls data.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Analysts said weaker data could <strong>strengthen bets for a larger, 50bps Fed cut<\/strong>, while stronger figures would keep markets positioned for a more cautious <strong>25bps move<\/strong>.<\/li>\n\n\n\n<li><strong>CME FedWatch tool<\/strong> shows markets pricing in an <strong>88% chance of a 25bps cut<\/strong> at the September 16\u201317 meeting.<\/li>\n<\/ul>\n\n\n\n<p>\u201cMarkets will pay close attention to these releases to gauge the state of the labor market. Any downward surprises will increase market expectations of a rate cut,\u201d said <strong>Carol Kong, currency strategist at Commonwealth Bank of Australia<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fed Independence Concerns<\/h3>\n\n\n\n<p>Beyond economic data, worries over the <strong>Fed\u2019s independence<\/strong> continue to weigh on sentiment.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>President <strong>Donald Trump\u2019s attempt to fire Governor Lisa Cook<\/strong> is tied up in a legal battle, with Cook challenging the dismissal in court.<\/li>\n\n\n\n<li>Analysts warn that political interference could undermine U.S. credibility and drive investors into alternative assets.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Tariffs Uncertainty Adds to Pressure<\/h3>\n\n\n\n<p>Markets are also digesting a <strong>U.S. appeals court ruling<\/strong> that deemed most Trump-era tariffs <strong>illegal<\/strong>, though they remain in place until October 14 pending an appeal.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>U.S. Trade Representative <strong>Jamieson Greer<\/strong> said talks with partners continue, signaling Trump may seek new legal avenues to impose tariffs regardless of the ruling.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Other Currencies<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Australian dollar<\/strong> rose <strong>0.11% to $0.6544<\/strong>, hitting a two-week high.<\/li>\n\n\n\n<li>The <strong>New Zealand dollar<\/strong> gained <strong>0.13% to $0.5902<\/strong>.<\/li>\n\n\n\n<li>The <strong>onshore yuan<\/strong> steadied at <strong>7.1318 per dollar<\/strong>, near a 10-month high, supported by <strong>firm central bank fixings<\/strong> and a buoyant domestic stock market.<\/li>\n\n\n\n<li>Chinese data painted a mixed picture: the <strong>private Caixin PMI<\/strong> showed factory activity expanding at the fastest pace in five months, contrasting with the <strong>official PMI<\/strong>, which contracted for a fifth straight month.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar weakened on Monday as investors turned their attention to a busy week of labor market data that could determine the size of an anticipated Federal Reserve rate cut later this month. Dollar Under Pressure The dollar eased 0.04% against the yen to 146.98, extending a 2.5% monthly decline versus the Japanese currency &hellip;<\/p>\n","protected":false},"author":9,"featured_media":52958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-118286","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118286"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118286\/revisions"}],"predecessor-version":[{"id":118287,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118286\/revisions\/118287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/52958"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}