Branch2 Intelligence
Dollar heads for weekly drop as jobs data dims Fed hike bets
Key takeaway
Weaker US jobs data dims Fed hike bets, sending the dollar lower and boosting the yen, euro, and sterling.
- Step 11st-order: Weaker US jobs data reduces Fed rate hike expectations, causing the US dollar to fall.
- Step 22nd-order: The weaker dollar reduces import costs for UK SMEs that source from the US or in dollar-denominated commodities, and lowers the cost of servicing dollar-denominated debt.
- Step 33rd-order: Reduced dollar strength may also ease pressure on UK gilt yields as global risk appetite improves, potentially lowering SME borrowing costs.
Source: IN:Economic Times
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