Dovish Fed Comments, Weak Job Openings Data Send U.S. Dollar Down
September 04 2024 - 9:12AM
RTTF2
The U.S. dollar weakened against its major counterparts in the
New York session on Wednesday, as job openings came in below
expectations in July, raising the possibility of a larger interest
rate cut by the U.S. Federal Reserve at the meeting this month.
Data from the Labor Department showed that job openings
decreased to 7.67 million in July from a downwardly revised 7.91
million in June.
Economists had expected job openings to dip to 8.10 million from
the 8.18 million originally reported for the previous month.
Dovish remarks from Atlanta Fed President Raphael Bostic also
weighed on the dollar.
Bostic said that the Fed must not maintain a restrictive policy
stance for too long, intensifying speculation that the central bank
may pivot towards easy policy soon.
"I believe we cannot wait until inflation has actually fallen
all the way to 2 percent to begin removing restriction because that
would risk labor market disruptions that could inflict unnecessary
pain and suffering," he added.
The greenback declined to 5-day lows of 1.1095 against the euro,
1.3175 against the pound and 0.8471 against the franc, off its
early highs of 1.1036, 1.3100 and 0.8518, respectively. The
currency is likely to challenge support around 1.12 against the
euro, 1.33 against the pound and 0.83 against the franc.
The greenback touched 143.99 against the yen, setting a 1-week
low. Immediate support for the currency is seen around the 141.00
level.
The greenback retreated to 0.6749 against the aussie, 1.3500
against the loonie and 0.6216 against the kiwi, from an early more
than 2-week high of 0.6685 and nearly 2-week highs of 1.3565 and
0.6169, respectively. The currency is seen finding support around
0.69 against the aussie, 1.32 against the loonie and 0.63 against
the kiwi.
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