The US dollar again suffered a decline in Wednesday's trade yesterday as the published employment component data added new concerns to the United States (US) economy.
JOLTS data recorded the number of job offers opened in the US in July at a lower figure than forecast at 7.67 million, the lowest reading since April 2021.
The percentage for a more aggressive interest rate cut by the Federal Reserve (Fed) increased again with expectations of 50 basis points rising to 45%, while 55% expected a cut of 25 basis points according to the CME FedWatch indicator.
Concerns currently engulfing global markets are seen to maintain risk-on sentiment, supporting safe-haven trades such as the Yen currency to strengthen.
Turmoil for US dollar trading is expected to continue until the end of the week with the focus in the New York session tonight being directed to the ADP employment data and also the ISM survey for the US service sector.
Next, the NFP employment report will be the main compass for the Fed on Friday which is expected to influence the monetary policy decision at the September meeting.
Among other things in focus yesterday was the decision of the central bank of Canada's policy meeting which met the forecast to lower interest rates for the third time in a row.
A further 25 basis point cut in the latest interest rate to 4.25% as the Canadian economy continues to show a downward trend in inflation.
However, in the New York session yesterday, the Canadian dollar was seen trading strongly compared to the US dollar which was under pressure.
