The Dollar has hit a one-week low earlier this morning as recent economic data releases have ramped up expectations for quicker than expected Interest Rate cuts in The US. An unexpected slowdown in US Services growth has also contributed to the Dollar falling. It was stated yesterday by Fed Chairman Jerome Powell however, that the central bank would place a continued focus on the need for more debate and data before cementing decisions on rate cuts, a move which is currently expected to take place in June.
Moving focus and attention to today’s economic releases, it’s a pretty quiet day other than the weekly jobless data in The US. These releases have been tied down around the 210k area for the past few months, so unless there’s any drastic change in figures, i.e, an alarming drop below this level then the market should stay elevated at current rates. The major focus for the end of this week will be the Non-Farm Payroll release. This release will again be a key indicator for The Federal Reserve with how their economy is performing right now, and where they can expect it to be in coming months.
As long as there isn’t any major surprises with this release, markets still currently price in a 60% probability of their first rate-cut being implemented in June. Other than this release, all focus will turn onto next week, as we see some fairly critical data being released. None more so than, Interest Rate Decisions for Bank of Canada & The European Central Bank as well as an Inflation Release for The US.