09.09.202514:12:26UTC+00DXY Edges Up Slightly

On Tuesday, the US dollar index experienced a modest increase, reaching 97.5, as investors assessed significant revisions in employment data and the implications for Federal Reserve policy. The Bureau of Labor Statistics announced a forthcoming revision, which is expected to lower payrolls for the year ending in March by 911,000 jobs—approximately 76,000 fewer jobs each month. This adjustment suggests the labor market is weaker than previously estimated. Although these revisions pertain to historical data, they underscore recent indications of diminished job creation, with summer payroll increases averaging a mere 29,000 per month. These developments have heightened expectations that the Federal Reserve may initiate interest rate cuts as early as next week, with Chair Jerome Powell acknowledging rising employment risks. Market participants largely anticipate a rate reduction on September 17, signaling a resumption of the Fed's rate-cutting cycle. Concurrently, reports of an Israeli attack in Qatar have rekindled concerns about potential escalation in Middle East conflicts.