U.S. Dollar finally outruns the cliff edge
<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-U.S.-Dollar-finally-outruns-the-cliff-edge-5083479015iStock-157168369.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p><span data-contrast="auto">Despite this positive tipping point, the dollar registers weak against its recent three-month high. This cooling gives solid indication that the Federal Reserve may be prepping for further interest rate hikes after a slowing down period of economic spending and employment.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">APAC Societe General and Global Head of FX Strategy, Kit Juckes noted:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<blockquote><p><span data-contrast="none">If a weaker dollar is only likely when the signs of slower growth are clear, a stronger euro is only likely when the current gloom about the economy eases.</span><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p></blockquote>
<p><span data-contrast="none">The U.S. payroll data is expected on tomorrow and, with second-tier figures for as job openings and private payrolls released earlier this week, the Q2 market growth from 2.1% to 2.4% suggests that the U.S. labour market is slipping behind H1 2023 growth targets.</span><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p>
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<p><span data-contrast="none">U.S. ADP figures recorded a further slowdown in the rate of wages growth with the annual increase at 5.9% from 6.2% when comparing the same period of July, year-over-year – the lowest reading since October 2021.</span><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p>
<p><span data-contrast="none">According to HSBC:</span><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p>
<blockquote><p><span data-contrast="none">The bank is reluctant to forecast a sharp decline [in wage growth rates] given vulnerabilities elsewhere. Still, a toppish USD does not mean a broad reversal lower is imminent. We expect the fortunes for the rest of G10 FX are likely to be mixed in the coming weeks.</span><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p></blockquote>
<p><span data-ccp-props="{"201341983":0,"335559738":300,"335559739":300,"335559740":240}"> </span></p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/u-s-dollar-finally-outruns-the-cliff-edge/">U.S. Dollar finally outruns the cliff edge</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
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