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Dollar on the Edge: Disappointing US Economic Data to Further Weigh on Greenback -Commerzbank

Published by
Nonhlanhla P Dube
  • The US Dollar’s current market sentiment remains skeptical, with investors closely monitoring economic data releases to determine its future direction.
  • Key data releases such as the ADP index and the ISM index for the service sector are expected to weigh on the Dollar, especially if they disappoint.
  • The Dollar’s reaction is expected to be asymmetric to weaker US data, with the upper end remaining weaker in the EUR/USD pair. If the US labor market report on Friday is disappointing, economists predict that EUR/USD might easily rise to 1.11.

The current market sentiment towards the US Dollar remains skeptical, with investors closely monitoring economic data releases to determine its future direction. According to economists at Commerzbank, if US economic data disappoints, the greenback is expected to continue to weaken.

In particular, the ADP index and the ISM index for the service sector, which are due to be published soon, are key data releases that could weigh on the Dollar. Commerzbank experts noted that if the economic data disappoints, the Dollar will ease further, as it did after the disappointing JOLTS data that was released recently.

In the event that the US labor market report on Friday is disappointing, economists predict that EUR/USD might easily rise to 1.11. However, Commerzbank has noted that the Dollar’s reaction is expected to be asymmetric to weaker US data. This means that the upper end remains the weaker one in EUR/USD.

As the Dollar continues to be under pressure, investors are closely watching for any further indications on the direction of the currency. Disappointing economic data could further dampen market sentiment towards the greenback and cause it to weaken even further.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: Commerzbank

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