Branch2 Intelligence
Dollar set for biggest weekly drop since April after jobs data lowers Fed hike bets
Key takeaway
Weaker US jobs data reduces Fed hike bets, triggering a sharp dollar sell-off.
- Step 11st-order: Weaker US jobs data reduces Fed hike expectations, causing USD to drop.
- Step 22nd-order: GBP/USD rises, lowering UK import costs for USD-denominated goods but squeezing UK exporters to the US.
- Step 33rd-order: Lower US rates ease global financing conditions, potentially reducing UK gilt yields and SME borrowing costs.
Source: IN:Economic Times
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