The dollar is stable as investors await the important US non-farm payrolls report
What is expected today
Investors attention will turn to the US employment report for June, scheduled for release on Thursday before the Fourth of July holiday due to independence day, after ADP data yesterday showed a sudden decline in the number of jobs in the private sector by 33 thousand jobs in June for the first time in more than two years, raising concerns about the weakness of the labor market.
Forecasts today indicate that the US economy will add 111 thousand jobs in June, down from the increase of 139 thousand jobs last May.
The unemployment rate is expected to rise to 4.3% from 4.2%.
This may bring growth concerns back to the fore again, and increase pressure on the Fed to accelerate its schedule of interest rate cuts, however, inflation is still far from its target, so it is possible that the Fed will continue to maintain its cautious stance on interest rate cuts until we see a significant decrease in inflation data.
Meanwhile, Trump's proposed tax and spending package, which is expected to add 3.3 trillion dollars to the national debt, is facing opposition in the House of Representatives.
