Dollar holds losses on U.S. economy concerns, Fed appointments
Initial jobless claims in the United States are under scrutiny after last week's disappointing nonfarm payrolls, which triggered a slide in the greenback. Meanwhile, the euro found support ahead of anticipated talks next week to end the war between Russia and Ukraine.
Last week, President Donald Trump fired the official responsible for the labour data he did not like, and focus is centring on his nomination to fill a coming vacancy on the Fed's Board of Governors and candidates for the next chair of the central bank.
"All those things suggest that we're seeing those political risks around the U.S. dollar increase, and on top of that you've got the weak data coming through," said Tony Sycamore, a market analyst at IG.
Any progress in ending the war in Ukraine "is going to be a positive driver of the euro," he added.
The dollar index, which measures the greenback against a basket of major peers, edged up 0.1% to 98.259 in early trade in Asia, after a 0.6% slide in the previous session.
The U.S. currency was little changed at 147.36 yen. The euro stood at $1.1654, down almost 0.1% after a 0.7% jump previously.
The U.S. Labor Department is expected to report that initial claims for unemployment benefits likely rose by 3,000 to 221,000 for the week ended August 2. Continued jobless claims for the week that ended July 26 are expected to increase slightly.
Data last Friday showed U.S. employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down considerably, suggesting a sharp deterioration in labour market conditions.
Fed funds futures traders are now pricing in a 94% probability of a 25 basis point cut at the Fed's September meeting, up from 48% a week ago, according to the CME Group's FedWatch Tool. In total, traders see 60.5 basis points in cuts this year.
Trump could meet Russian leader Vladimir Putin as soon as next week, a White House official said on Wednesday, as the U.S. kept up pressure on Moscow to end the war in Ukraine.
The president said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four.
Sterling was steady at $1.33505. The Australian dollar was little changed at $0.65.
Bitcoin edged 0.1% lower to $115,038.79.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
8 minutes ago
- Bloomberg
Trump to Lay Out His Plan for Reducing Crime in Nation's Capital
President Donald Trump said he will lay out his administration's plan to reduce crime in the nation's capital, even as violent incidents in the District of Columbia are at a 30-year low. Trump said in a social media post that he will have a news conference on Monday that 'will, essentially, stop violent crime in Washington, DC.'
The Hill
9 minutes ago
- The Hill
Democrats should give peace a chance in Ukraine
After three and a half years of carnage in Ukraine, the meeting expected soon between President Trump and Russian President Vladimir Putin is an opportunity to finally find a peaceful solution to a terrible war. Genuine diplomacy to end the bloodshed is long overdue. Up to 100,000 Ukrainians are estimated to have been killed, many of them civilians, along with more than twice that number of deaths among Russian troops. Hundreds of thousands more have been wounded on each side, and Russian bombardment has devastated many of Ukraine's cities and towns. Condemnations of the Trump-Putin summit are predictable from congressional Democrats more interested in scoring political points than opening a diplomatic door for peace. While most Republican leaders will praise Trump no matter what he does, pressure from the so-called national security establishment could damage prospects for a peaceful outcome in Ukraine. Since early 2022, the U.S. government, on a largely bipartisan basis, has provided upwards of $67 billion in military aid to Ukraine. Supporters of continuing the massive arming of Ukraine claim the highest moral ground, while others do the killing and dying. Even after it became clear that the war could go on indefinitely without any winner, the message from Washington's elite politicians and pundits to the Ukrainian people has amounted to 'let's you and them fight.' Last week, Sen. Lisa Murkowski (R-Alaska) and Sen. Jeanne Shaheen (D-N.H.) introduced a bill to give Ukraine $54.6 billion in aid over the next two years, with many billions going directly to arm the Ukrainian military. If the Trump-Putin summit is unsuccessful, the currently dim prospects for such legislation could brighten. This dynamic gives war enthusiasts and advocates for the military-industrial complex a motive to throw cold water on the summit. While Murkowski now represents a minority view on Ukraine among fellow Republicans, Shaheen is decidedly in the mainstream of her Senate Democratic colleagues. Even after all the suffering and destruction in Ukraine, few seem really interested in giving peace a chance. As for Trump, he has sometimes talked about seeking peace in Ukraine, even while greenlighting large quantities of weapons to the Kiev government. Given his mercurial approach, there is no telling what his mindset will be after meeting with Putin. Most Democrats in Congress seem content with continuation of a war that has no end in sight. Little is being accomplished in military terms other than more killing, maiming and destruction. During recent months, Ukrainian forces have lost ground to Russian troops. While some hawks still pretend that Ukraine could 'win' the war with enough missiles, bombs, ammunition and other supplies from the U.S., realists scoff at such claims. Unfortunately, while the war drags on, Democrats in Congress are prone to treat diplomacy as a third rail. To a large extent, their partisan template was reinforced nearly three years ago, making 'diplomacy' a dirty word for the Ukraine war. The fiasco began in late October 2022 with the release of a letter to President Biden signed by 30 House Democrats, led by Rep. Pramila Jayapal (D-Wash.), the chair of the Congressional Progressive Caucus. The letter was judicious in its tone and content, affirming support for Ukraine and appropriately condemning 'Russia's war of aggression.' But the signatories got in instant hot water because the letter balanced its support for arming Ukraine with sensibly urging steps that could stop a war without a foreseeable end. 'Given the destruction created by this war for Ukraine and the world, as well as the risk of catastrophic escalation, we also believe it is in the interests of Ukraine, the United States, and the world to avoid a prolonged conflict,' the letter stated. 'For this reason, we urge you to pair the military and economic support the United States has provided to Ukraine with a proactive diplomatic push, redoubling efforts to seek a realistic framework for a ceasefire.' Just one day later, Jayapal issued a statement declaring that 'the Congressional Progressive Caucus hereby withdraws its recent letter to the White House regarding Ukraine.' For some members of the caucus, the sudden withdrawal was a jarring and embarrassing retreat from a stance for diplomacy. Ever since then, the war train has continued to roll, unimpeded by cooler heads. And, like elected officials in Washington, voters are looking at the war through partisan lenses. A March Gallup poll found that 79 percent of Democrats said that the U.S. was not doing enough to help Ukraine — a steep jump from 48 percent since the end of last year. During the same period, the number of surveyed Republicans with that view remained under 15 percent. It is time for Americans and their elected representatives to set aside partisan lenses and see what's really at stake with the Ukraine war. Endless killing is no solution at all. Rebuilding détente between Washington and Moscow is essential — not only for the sake of Ukrainians and Russians who keep dying, but also for the entire world. The two nuclear superpowers must engage in dialogue and real diplomacy if the next generations all over the globe are to survive. Norman Solomon is cofounder of RootsAction and executive director of the Institute for Public Accuracy. His book 'War Made Invisible: How America Hides the Human Toll of Its Military Machine' was published in 2023.
Bloomberg
10 minutes ago
- Bloomberg
What to Know About Trump's Push for Crypto in 401(k) Plans
Americans looking to supercharge 401(k)s may soon get the chance to invest in crypto, if they're willing to stomach the risks. President Donald Trump's recent executive order clears the way for digital assets to be added to the mix of investments available in workplace retirement plans — and for ordinary investors dissatisfied with the returns from target-date funds or the traditional 60/40 portfolio to push their savings into riskier assets.
