USD Eyes Key Jobs Data and Tariff Impact as Powell Signals Possible July Easing

USD Focuses on Jobs Data and Tariffs as Powell Signals Potential July Rate Cut

Federal Reserve Chair Jerome Powell maintained his cautious, data-dependent approach during the ECB forum in Sintra, stressing that the US Dollar will be highly sensitive to upcoming jobs and inflation reports. Powell did not dismiss the possibility of an interest rate cut as soon as July, signaling that weaker-than-expected payroll figures tomorrow could give markets the green light to price in easing this month.

Market participants are now closely watching the Nonfarm Payrolls (NFP) and inflation data for clearer guidance on the Fed’s next moves. At the same time, ongoing tariff uncertainties remain a key factor influencing monetary policy and the USD outlook.

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• US Jobs Data and Fed Policy: What to Expect
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• Federal Reserve Rate Cut Predictions