The dollar index held its recent decline to around 104.2 on Thursday, hovering at its weakest levels in over a week as investors reassessed the outlook for interest rates, while awaiting the latest US monthly jobs report.
On Wednesday, ISM data showing a surprise slowdown in US services growth and easing price growth for service providers supported rate cut expectations and weighed on the dollar.
Meanwhile, ADP data showed that 184,000 private-sector jobs were added to the US economy in March, highlighting the labor market’s resilience.
Elsewhere, Federal Reserve Chair Jerome Powell said on Wednesday that the central bank will need more evidence that inflation is moving sustainably toward the 2% target before cutting rates.
Atlanta Fed President Raphael Bostic also told CNBC he thinks one cut might be possible, while San Francisco’s Mary Daly and Cleveland’s Loretta Mester reiterated their forecasts for the start of policy easing this year.
