The US Dollar is trading stronger this morning, holding onto gains from yesterday, though it remains set to close the holiday-shortened week slightly lower than where it began. Markets reacted initially to a stronger-than-expected June non-farm payrolls report, which showed 147,000 jobs added and unemployment falling to 4.1 percent. However, the positive headline was tempered by weak private sector and manufacturing hiring, as well as a dip in the labor force participation rate, causing the Dollar’s rally to fade. Fed Chair Jerome Powell also signaled that interest rate cuts may have already occurred if not for lingering uncertainty around trade-related inflation risks. With US markets closing early ahead of the July 4th holiday, thin liquidity could bring additional volatility to today’s session.
