The dollar index has held steady during today’s early trading, following a volatile previous session triggered by the release of U.S. job opening data on Tuesday.
Job openings surged from the previous month to 8.756 million in February, exceeding market expectations of 8.75 million.
This week, the greenback has continued its upward trajectory, propelled by a series of robust U.S. economic data. Manufacturing expanded for the first time in 1.5 years in March, accompanied by a stronger-than-expected rebound in new orders for U.S. manufactured goods and a resilient labor market.
There is the potential for further upside for the dollar later today, with the imminent release of ISM Services PMI data. Market consensus expects a March reading of 52.7, slightly above February’s 52.6 points. Moreover, Federal Reserve Chair Jerome Powell is scheduled to deliver a speech today, which could introduce volatility into the dollar.
Recent remarks from Powell have hinted at delayed rate cuts, and while expectations lean towards a neutral stance, market participants anticipate Powell to maintain a cautious approach. He is expected to weigh the prospect of future rate adjustments against prevailing economic conditions, a scenario that may uphold a strong greenback.
