FX.co ★ Dollar Holds Decline Ahead of More Jobs Data

The US dollar index has remained subdued below the 99 mark as of Thursday. Investors are attentively awaiting new data from the labor market, which could significantly influence forecasts for the Federal Reserve's upcoming policy decisions. All eyes are on the weekly jobless claims released on Thursday and the pivotal nonfarm payrolls report due on Friday. The US dollar experienced renewed selling pressure on Wednesday following a series of disappointing economic indicators that have ignited worries about the robustness of the US economy. In particular, the ADP employment report revealed that the private sector only added 37,000 jobs in May—a figure well below expectations, marking the weakest performance in over two years. Furthermore, the ISM services PMI indicated contraction in May for the first time in nearly a year, driven by a significant drop in new business and escalating input costs, likely intensified by recent tariff hikes. Adding to the downward pressure, President Trump persistently advocated for interest rate reductions, although Federal Reserve officials have, so far, maintained a cautious approach amid ongoing uncertainties.