FX.co ★ Dollar Holds Steady Ahead of Jobs Report

The dollar index was steady around 101.4 on Thursday, following heightened volatility in the previous session, as investors awaited the June jobs report for fresh insight into labor market conditions and clearer guidance on the Federal Reserve’s policy path. Data released on Wednesday showed that US private-sector hiring slowed more than expected in June. Fed Chair Kevin Warsh noted that inflation expectations had eased over the past month, indicating there was no immediate need to raise interest rates, while reaffirming the Fed’s commitment to restoring price stability. Markets are still pricing in more than a 60% probability of a Fed rate hike in September. The dollar also held firm despite increased oil shipments through the Strait of Hormuz and signs of progress in indirect US-Iran talks, developments that weighed on oil prices and helped ease inflation concerns.