By Ankur Banerjee
SINGAPORE (Multibagger) - The dollar is on the rise, holding close to a two-week high as investors brace for upcoming economic data, including Friday's U.S. payrolls, which could impact the size of an anticipated interest rate cut from the Federal Reserve.
The euro and sterling are both down slightly, while the U.S. dollar index is higher, signaling market expectations of U.S. rate cuts. Investor attention is focused on the U.S. payrolls data due on Friday, with expectations of a 25 bps cut from the Fed.
This week's key data releases will help determine whether a 25- or 50-bps cut is more likely in September, based on the strength of the labor market and economic indicators.
Economists predict an addition of 165,000 U.S. jobs in August, with strong consumption driving economic growth. The Fed's preferred inflation measure also remains steady, supporting the case for rate cuts.
Despite the current Goldilocks moment, markets anticipate further rate cuts this year. Treasury yields are stable, while the yen and Australian dollar show mixed movements ahead of key economic reports.
Analysts attribute recent currency fluctuations to market conditions and expect continued volatility in the coming days.