04.09.202512:27:11UTC+00Dollar Holds Modest Gains but Remains Weak After ADP Report

The US dollar index slightly increased to 98.3 on Thursday, yet it continued to reflect general weakness as investors considered a series of lackluster economic indicators and their implications on the Federal Reserve's policy. The latest ADP report revealed that private sector employment grew by only 54,000 jobs in August, significantly down from July's revised figure of 106,000 and falling short of the anticipated 65,000. Additional statistics this week suggested a cooling labor market and reduced demand, with job openings decreasing to 7.18 million in July, marking the lowest level since September 2024, and a consecutive monthly decline in factory orders. The market sentiment is now largely expecting a 25 basis-point rate cut from the Fed later this month. Investor focus is now shifting towards Friday’s nonfarm payrolls report, which is anticipated to play a crucial role in shaping short-term market trends.