FX.co ★ Dollar Falls to Six-Week Low as Soft Data Fuels Fed Rate Cut Bets

The US dollar index continued its downward trend, reaching 98.6 on Thursday, marking its lowest point since April 21. A new set of economic data has heightened concerns regarding the US economic outlook. Jobless claims for the final week of May increased to 247,000, the highest since early October 2024, surpassing expectations of 235,000, suggesting potential weakening in the labor market. Furthermore, reports indicated that productivity in Q1 declined more sharply than initially estimated, prompted by a significant rise in labor costs. April's trade data also showed a narrowing trade deficit, primarily due to a decrease in imports. Investors are now focused on Friday's nonfarm payrolls report, seeking further insights into the Federal Reserve's future actions. Despite President Trump's continued advocacy for rate cuts, Federal Reserve officials remain cautious due to ongoing trade uncertainties.