The dollar index held steady above 106 on Thursday after recovering from one-month lows earlier this week, as investors are preparing for a key monthly jobs report that could guide the outlook for US monetary policy. The US non-farm payrolls number for July due on Friday is expected to come in at 250,000, and a surprise on either side could impact expectations on the Federal Reserve’s next policy move.
The dollar started to weaken in mid-July amid speculations that the US central bank may raise interest rates less aggressively in the coming months to avoid a recession. However, the greenback recouped some losses after several Fed officials recently pushed back against such expectations, voicing their determination to keep hiking rates until inflation abates. St. Louis Fed Bank President James Bullard said he favors a strategy of front-loading big rate increases, repeating that he wants to end the year at 3.75% to 4%, as reported by Bloomberg.
