Catenaa, Saturday, August 5, 2025 –The US dollar edged higher Monday, stabilizing after a turbulent week marked by a weak jobs report, a Federal Reserve governor’s resignation, and President Donald Trump’s dismissal of a key labor statistics official.
Friday’s trio of events shook investor confidence, triggering bets on imminent Federal Reserve rate cuts. Despite Monday’s modest rebound, analysts warn the dollar’s recent decline may resume as uncertainty around US economic policy and signs of economic slowdown weigh on the currency.
Data released showed US job growth lagged expectations for July, with prior months’ figures revised down sharply by 258,000, signaling labor market weakness.
Market participants remain cautious amid rising doubts over the benefits of trade policies aimed at deterring overseas production.
The dollar gained against the euro, Swiss franc, Australian, and New Zealand dollars, rising 0.5% versus the Swiss franc and 0.3% against the Japanese yen. The euro fell 0.1% to $1.1576 amid ongoing trade tensions, including Trump’s tariffs on Switzerland.
Trump’s firing of Bureau of Labor Statistics Commissioner Erika McEntarfer and Fed Governor Adriana Kugler’s unexpected resignation have intensified scrutiny on US policy independence.
Trump plans to announce new appointments to both positions soon.
Markets price an 84% probability of a Federal Reserve rate cut in September, with expectations for further easing by year-end. Treasury yields declined, reflecting heightened anticipation of looser monetary policy.
