May 05, 2024 (MENAFN via COMTEX) --
(MENAFN - Your Mind Media ) 3rd May 2024
The dollar index continues its decline toward the key level of 105 points, following recent Federal Reserve policy announcements. The Fed maintained interest rates unchanged at 5.5%. However, Powell's comments, along with the Fed's slowing of balance sheet reduction, have raised anticipation for interest rate cuts, with a start now expected in September. Looking ahead, the greenback could decline against a basket of currencies as the market awaits today's key jobs data, which could impact the Fed's outlook. The Nonfarm Payrolls (NFP) data is expected to influence market sentiment, potentially weighing on the dollar due to an anticipated decrease in job creation. A figure of 243K is expected compared to the previous month's 303K. On the other hand, the Unemployment Rate is predicted to remain at 3.8%, while Average Hourly Earnings are forecasted to grow at a slower pace of 4% year-on-year. The dollar could also react to the release of the Service PMI. The market consensus projects an increase to 52 points in April, up from March's reading of 51.4 points. Treasury yields could also come under pressure if the job market and PMI data are weaker than expected. However, yields currently remain near their high since the beginning of the year and could rebound if today's data is stronger than expected. Markets could see volatility risks in particular as expectations have been changing rapidly.
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COMTEX_451923808/2604/2024-05-05T14:14:11
