Amidst the Middle East situation and ahead of non-farm payroll data, the dollar index dipped slightly to 99.352
On June 5th, with the US May non-farm payroll data about to drop and the geopolitical uncertainty in the Middle East heating up, the dollar saw a slight decline.
By this morning's US market close, the dollar index (DXY) was down 0.06% to 99.352, still close to the near two-month high of 99.552 hit on Wednesday.
Michael Pfister, an analyst at Commerzbank, noted in a report that after several months of weak job growth, the US labor market seems to be stabilizing.
He anticipates that May's non-farm payroll will show an increase of 100,000, potentially exceeding market expectations. Pfister emphasized that for the dollar, the key lies in how much these figures could bolster the market's expectations for further rate hikes.
Meanwhile, new geopolitical variables are emerging. US President Trump stated that the US does not need to reach an agreement with Iran to obtain the country’s enriched uranium.
Additionally, Hezbollah rejected the US-backed ceasefire agreement between Israel and Lebanon. These factors collectively heighten market uncertainty, exerting downward pressure on the dollar's movement.
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