USD: US unemployment rate as an important statistic for the Fed – DBS

DBS forecast for the USD across all currencies has been lowered, FX strategist Philip Wee notes.

Rate cut is ‘on the table’ in September

“The moment we had waited for this year arrived last week. At the FOMC meeting on July 31, Fed Chair Jerome Powell reckoned an interest rate cut was ‘on the table’ in September.”

“In the previous meeting on June 12, Powell said the Fed was ready to respond if jobs weakened unexpectedly and considered the rise in the US unemployment rate as an important statistic.”

“Last Friday, the jobless rate increased to 4.3% in July from 4.1% in June, above the Fed’s longer-run projection of 4.2%.”