FX.co ★ Dollar Stabilizes Ahead of Key Jobs Report

The US dollar index remained stable around 96.7 on Thursday, maintaining its position close to a more than three-year low as attention shifted to the forthcoming June jobs report. Investors are keenly observing these figures for new insights into the labor market's condition and potential implications for the Federal Reserve's interest rate decisions. Should the report reveal weaker-than-expected outcomes, it could bolster anticipations for an earlier rate cut, possibly occurring as early as July. In a surprising turn, ADP data released on Wednesday indicated a decline in private payrolls, with employment dropping by 33,000 in June, which heightened concerns about a weakening labor market. In terms of trade, President Donald Trump announced on Truth Social a new agreement with Vietnam, which involves a 20% tariff on imports from the nation. This development has increased optimism for further bilateral trade agreements. Concurrently, Trump's proposed tax-and-spending package, projected to increase the national debt by $3.3 trillion, is encountering opposition in the House of Representatives.