US Dollar will struggle to regain ground – Commerzbank
|Antje Praefcke, FX Analyst at Commerzbank, analyzes USD reaction to US labour market data.
The US labor market is still relatively robust
The bottom line is that the US labor market is still relatively robust. In this respect, it tends to support our experts' expectation that the Fed's first rate cut will not come as soon as the market expects. Nevertheless, the market is not ready to make any significant adjustments to its Fed rate cut expectations. This leads me to believe that it will be all the more difficult for the Dollar to regain ground.
The market seems to be reacting more to data that supports their view that rates will be cut soon, while at the same time the data is getting worse. That doesn't bode well for the Dollar.
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