Société Générale: If the labor market cools down, the dollar may remain weak

ChainCatcher message, Societe Generale stated in a report that the upcoming U.S. economic data may confirm that the labor market is steadily cooling down, providing support for the Federal Reserve to cut interest rates and for the dollar to weaken. "If the trend is a gradual easing of the labor market, it will point towards rate cuts, but not at the pace currently expected," said a foreign exchange strategist at Societe Generale. They noted that this could inject some volatility into the forex market; however, the bank still advises selling the dollar on any rebound unless the labor market completely stops easing. (Jin Ten)