Investors await July ADP employment and ISM services PMI figures, which may sway Fed rate expectations amid subdued USD performance.
The US Dollar Index (DXY) trades near 99.80, slightly lower as markets brace for July’s ADP Employment Change and ISM Services PMI data. The figures could influence Federal Reserve policy, with traders pricing a 56.7% chance of a September rate hike.
Economists expect ADP payrolls to rise by 70K, down from June’s 98K, while the ISM Services PMI is projected at 54.5, up from 54.0. The Fed has abandoned forward guidance, making data releases pivotal for rate decisions.
The dollar weakened most against the British pound, reflecting cautious sentiment ahead of the releases. Geopolitical developments, including US-Iran talks on the Strait of Hormuz, may also impact oil prices and inflation expectations.