US Economic Data May Limit Dollar Index (DXY) Decline

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Jun 30, 2025

The US Dollar Index (DXY, Financial) recently hit a three-year low due to concerns over potential interest rate cuts. However, Francesco Pesole from ING suggests that upcoming US economic data might curb the dollar's decline. These data releases could lead investors to scale back their expectations for rate cuts.

The non-farm payroll report, set for release later this week, is anticipated to show a gradual slowdown in job growth. Despite this, it may not be enough to trigger significant bets on a rate cut in July. Additionally, inflation could rise in the coming months, providing some short-term support for the dollar.

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