US Dollar Set for its Worst Week of 2019 So Far
- Escalation of China-US trade war and potential Federal Reserve interest rate cuts have taken the dollar to a two-month low
- ADP National Employment Report reveals a worse-than-expected slowdown in the US labour market and bleak prospects for hiring in the country
The continued China-US trade war, combined with a US labour market slowdown, have taken the dollar to a two month low this week. The currency was set for its worst week since December 2018 before an anticipated US jobs report strengthened the prospect of a Federal Reserve interest rate cut.
It is expected that the release of non-farm payrolls data at 14:30 GMT will show a drop in hiring in the US. Societe Generale strategist Kit Juckes said: “The NFP series, more than most, tends to hold up until it falls off the edge of a cliff, and that cliff is getting closer.”