The US dollar edged higher on Tuesday and remained on track to post a second consecutive monthly gain.
Strong US economic data and persistent inflation concerns have reinforced expectations that the Federal Reserve could tighten monetary policy, supporting the dollar.
Markets continue to price in a 25-basis-point rate increase by the end of the year, providing support despite occasional pullbacks in bond yields.
The dollar has also continued to benefit from safe-haven demand following recent tensions in the Middle East and ongoing concerns regarding the next steps in the diplomatic process. Uncertainty surrounding a meeting between US and Iranian officials could still generate volatility.
Attention now turns to today’s JOLTS job openings report. Last month’s release surprised significantly to the upside, reaching its highest level since November 2024 and reinforcing the view that the US labour market remains resilient. Today’s consensus points to a moderation to 7.30 million openings from 7.618 million previously. Even so, such a reading would still indicate a strong labour market and could reinforce expectations that the Federal Reserve could raise interest rates higher, providing further support for Treasury yields and the dollar.
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