The US Dollar Index bounced up from 98.00 lows but remains trapped within Wednesday's range.
A weak Job Openings report on Wednesday boosted hopes of Fed easing and hammered the US Dollar's recovery attempts.
Investors are looking from the sidelines, awaiting key US labour and services activity figures.
The Dollar is trading with marginal gains on Thursday. The Index has reached intra-day highs at 98.25 but is still trading within Wednesday’s range, as the market braces for the releases of the US ADP Employment Change and ISM Services PMI figures, due later on the day.
The US Dollar Index, which measures the value of the Greenback against a basket of major currencies, retreated from weekly highs at 98.60 on Wednesday, and bottomed at the 98.00 area following disappointing JOLTS Job openings, which boosted market hopes of a Fed cut in September.
Higher hopes of Fed easing are hurting the USD
To confirm those hopes, Fed Governor Christopher Waller reiterated that his calls for a rate cut in September, at a CNBC interview and pointed to “multiple interest rate cuts” in the next six months, adding negative pressure on the US Dollar.
The USD is trimming some losses on Thursday, as investors brace for the US ISM Services PMI and the US ADP report, which is expected to show further evidence that the US lab¡our market is losing momentum.
Investors’ reaction to these figures, however, is likely to be limited, as the market will remain expectant of Friday’s Nonfarm Payrolls report for a more accurate assessment of the Federal Reserve's near-term plans. The market consensus anticipates a relatively low employment creation in August.
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