Hani Abuagla

The US Dollar held steady on Wednesday as investors adopted a wait-and-see stance ahead of a critical slate of labor market data that could steer the Federal Reserve’s policy outlook. With the ISM Services PMI and ADP private payrolls report due later in the day, followed by jobless claims on Thursday and May’s Non-Farm Payrolls on Friday, market participants could remain cautious.

Tuesday’s JOLTS report surprised to the upside, with job openings rising to 7.39 million in April, well above expectations and signaling continued strength in the labor market. However, the sharp 3.7% drop in factory orders highlighted persistent weakness in the manufacturing sector, which could revive concerns over the broader industrial outlook.

The yield on the US 10-year Treasury note stabilised at around 4.45% as Fed officials have reiterated the need to keep rates unchanged in light of ongoing trade policy uncertainty and mixed economic signals.

Abuagla is Senior Market Analyst at XTB MENA