FX.co ★ Dollar Eases as Markets Weigh Mixed Labor Data

The US Dollar Index experienced a slight decline to 99.1 on Wednesday, reversing some of the previous day's gains. This movement reflected investors' reactions to mixed signals from the labor market, ahead of the highly anticipated nonfarm payrolls report due on Friday. According to ADP data, private sector employment increased by only 37,000 jobs in May, marking the slowest hiring rate since March 2023 and falling significantly short of the projected 115,000. Conversely, the JOLTs report indicated an unexpected rise in job openings, reaching 7.39 million in April, up from March’s revised figure of 7.2 million, exceeding the anticipated 7.1 million, thus demonstrating ongoing robustness in the labor market. Federal Reserve officials have generally expressed a preference to maintain current interest rates, citing trade uncertainties, even amidst continued pressure from President Trump to implement rate cuts. Furthermore, trade tensions continue to capture attention, as new 50% tariffs on steel and aluminum imports have officially been enacted today.