Forex
Dollar Index Tumbles as Nonfarm Payrolls Loom
The US Dollar is in focus ahead of Friday's nonfarm payrolls report, which will provide fresh clues for Federal Reserve policy. ADP employment and jobless claims data this week will shape expectations for September rate decisions.
Soft US economic data has reduced the likelihood of additional Fed tightening, with futures markets now pegging the probability at 59% down from 67%. The Euro is benefiting from waning concerns over imported inflation in the Eurozone following a dip in energy prices.
The ECB's decision to leave the deposit rate at 2.25% last month has market participants looking for signs of economic stabilization, with German Industrial Production and Eurozone Retail Sales data due soon.