US Dollar Near Multi-Week Lows Amid Weak Data

By Bas Kooijman, CEO and Asset Manager, DHF Capital S.A

5th June 2025

The US Dollar remained under pressure on Thursday, as investor sentiment leaned toward caution amid a string of disappointing economic indicators.

Wednesday’s ISM Services PMI unexpectedly fell into contraction for the first time in nearly a year, while the ADP private payrolls report was weak, with just 37,000 new jobs added in May. These results added to concerns that tariff-related uncertainty is beginning to erode business momentum and consumer demand.

Despite the weak data, the greenback could find some support in Fed officials’ caution. Fed Governor Lisa Cook warned that tariffs could push inflation higher. Meanwhile, Atlanta Fed President Raphael Bostic reiterated his preference for patience and mentioned the possibility of a single rate cut later this year.

This cautious stance may help stabilize US Treasury yields, with the 10-year note holding around 4.36% on Thursday after Wednesday’s sharp decline. Still, with weekly jobless claims due later today and the pivotal Non-Farm Payrolls report on Friday, the dollar is likely to stay under pressure unless the data comes out better than expected.