Dollar Index Heads for Negative Weekly Close on Weak Jobs Data

The US Dollar Index is on track to close the week in negative territory, as the greenback underperforms against major currency peers. The move follows the release of weaker-than-expected Nonfarm Payrolls data for June, which has led traders to reassess their expectations for further hawkish action by the Federal Reserve.

The softer labor market report has dampened sentiment around the dollar, with the index reflecting broad-based selling pressure. The reversal marks a shift from prior expectations of continued rate hikes, as market participants now price in a more cautious Fed stance.