Dollar Index Hovers Above 98.00 as Markets Hold Breath for Job Report 🔍

The US Dollar Index is floating around 98.10 in early European trading today. Recovered some. Last session saw gains. Traders seem jittery 🚨 with today's US Nonfarm Payrolls report looming large.

Everyone's watching. The job numbers could shake up the Fed's September plans. Most think we'll see about 75,000 new jobs for August. Unemployment might stick at 4.3%. Weaker numbers? The Fed will probably cut rates next month 📉. Pretty obvious.

The dollar's struggling a bit. Kind of surprising how quickly rate cut expectations have built up. Those softer employment figures aren't helping. The CME FedWatch tool shows something interesting - over 99% chance of a 25-point cut next meeting. Last week it was 87%. Big jump 📊.

Recent numbers don't look great. Jobless claims hit 237K last week. That's higher than expected. The previous reading was 229K. Markets thought we'd see 230K. And then there's the ADP report. Just 54,000 jobs in August. Not what people wanted. July had 106K after revisions.

Fed officials are talking too. Chicago's Goolsbee mentioned early today that the job market might be getting worse. He seems uncertain, wants to wait and see. Williams from New York said yesterday rates will probably keep falling, but it's not entirely clear how fast. They're trying to balance employment support with proper rate moves 🌐.

Against other currencies? The dollar looks weakest versus the New Zealand Dollar today. It's all about the waiting game now. Those job numbers could change everything 🔮.