02.09.202502:06:09UTC+00Dollar Holds Steady as Jobs Data Eyed

The dollar index remained steady at approximately 97.8 on Tuesday as investors resumed activity following the holiday weekend, turning their focus to pivotal labor market reports expected this week, which could influence the Federal Reserve's policy decisions. The spotlight is on the upcoming August payroll data, unemployment figures, job openings, and private sector hiring statistics, all due for release this Friday. Recently, the US dollar has been under pressure due to increased market speculation regarding potential Federal Reserve rate cuts, despite persistent inflation concerns. Traders currently anticipate a nearly 90% probability of a 25 basis point rate reduction later this month. San Francisco Federal Reserve President Mary Daly indicated on Friday that the central bank is ready to adjust its policies in response to labor market risks, noting that inflation driven by tariffs may be temporary. Moreover, concerns about the Federal Reserve's independence continue, especially in light of President Donald Trump's efforts to remove Fed Governor Lisa Cook.