The world’s largest economy is under pressure, indicating interest rates might be doing their job.
The dollar dropped across the board on Tuesday on signs that the American economy might be reaching an inflection point. Latest data showed a marked shift to the downside after the Labor Department said job openings for February dropped to 9.9 million, down from January’s 10.6 million.
The news quickly knocked the dollar’s valuation, resulting in a broad-based selling. The EUR/USD advanced to levels near $1.10, while dollar-led pairs like the USD/JPY and the USD/CHF slipped by roughly 1% each. The dollar index, DXY, tumbled 0.75% on the day.
Early Wednesday morning is seeing most of the moves still standing strong as the dollar is moving sideways. Next on the weekly agenda is the jobs number for March – the nonfarm payrolls. Analysts expect that US employers added 240,000 new hires, down from February’s 311,000 workers.
