What’s going on here?
The US dollar has slumped to its lowest level since April against the euro and sterling, and is near a two-week low against the yen, due to signs of an economic slowdown.
What does this mean?
A slowdown in US manufacturing and an unexpected dip in construction spending are raising alarms. Speculation for a potential Federal Reserve rate cut in September has intensified, with fed funds futures showing a 59.1% probability, up from 55% last Friday. Meanwhile, Friday’s monthly payroll data is under close watch for further signs of economic strain. The Fed’s high-
interest
-rate policy is drawing criticism for its economic impact, with no policy changes expected at the meeting on June 12.
Why should I care?
For markets: Currencies on the move.
As the US dollar weakens, the euro has gained 0.11% to $1.09155, its highest since March 21, and sterling has risen 0.05% to…
