On the afternoon of 9/9, the Dollar Index, which measures the US dollar against a basket of major currencies, fell to 97.32 points. This is the lowest level since 24/7.

The euro rose 0.1% to 1 EUR against 1.1778 USD, the highest level since 24/7. The Japanese yen, a favored safe-haven currency, rose 0.3% against the USD.

The Australian dollar rose 0.2%, reaching 1 AUD against 0.66 USD. The Chinese yuan and the British pound also strengthened against the US dollar.

Illustrative photo of a US one-dollar bill. Photo: Reuters

Illustrative photo of a US one-dollar bill. Photo: Reuters

The US dollar weakened as investors braced for the revised US jobs report. This data is expected to be weaker than initially estimated, reinforcing the possibility that the US Federal Reserve (Fed) will cut interest rates more aggressively than expected.

Economists estimate that in the revised report for the period from April 2024 to March 2025, the number of new jobs created fell by as much as 800,000. "The labor market is getting worse and worse, and this is making the US dollar weaker," said Alex Hill, Director of Electus Financial.

At the Fed's annual conference last month, Fed Chair Jerome Powell also noted that "the risks of a weakening labor market have increased."

The CME FedWatch tool shows that investors now anticipate an almost certain 25 basis point (0.25%) interest rate cut by the Fed at its meeting next week. The probability of a 50 basis point cut is 11.6%.

In the gold market, the price is currently 3,656 USD per ounce. Gold tends to rise when the USD weakens and interest rates fall. Since the beginning of the year, the price of the precious metal has increased by more than 30%.

Before the Fed, the European Central Bank (ECB) also has a policy meeting this week. It is expected to keep interest rates unchanged. Analysts at ING believe the impact of this decision on European financial markets will be negligible.

Ha Thu (according to Reuters)