Daly-Schmid Comments Boost Dollar, NFP Will Decide
The US Dollar Index (DXY) briefly dipped to around 99.18 on Thursday (June 4), but rebounded to 99.45 in the American session as the market digested comments from several Federal Reserve officials ahead of Friday's Nonfarm Payrolls (NFP) data release. The market assessed the Fed's tone as returning to a cautious stance on inflation, which has gradually supported the dollar.
San Francisco Fed President Mary Daly said monetary policy is well-positioned and emphasized that returning inflation to target remains a top priority. Meanwhile, Kansas City Fed President Jeffrey Schmid warned that inflation remains too high and left open the possibility of higher interest rates if price pressures persist. Following these hawkish comments, the greenback strengthened as the session progressed.
In major markets, EUR/USD continued to struggle for a firm direction as investors awaited additional clues from the eurozone growth outlook and US jobs data. GBP/USD hovered around 1.3420, remaining held back by a resurgent dollar.
In Asia, USD/JPY fell slightly but remained near 160.00, a level sensitive to the risk of Japanese intervention. Meanwhile, AUD/USD held around 0.7130 after RBA Governor Michele Bullock reiterated the central bank's commitment to returning inflation to target, although Aussie gains remained limited as resilient US data kept the dollar strong.
With markets awaiting the NFP, dollar movements are likely to remain data-driven: Friday's jobs and wages figures will be the main drivers of whether the DXY continues its rise or weakens again. (Arl)
Source: Newsmaker.id
