Dollar index falls 0.5% this week, marking biggest drop since April

U.S. dollar is on track for its biggest weekly drop since April, falling 0.5% due to disappointing job growth data. Consequently, traders are estimating a 46.8% likelihood that Federal Reserve will keep interest rates steady in its upcoming meeting on September 15-16.

BRIC Team

Jul 4, 2026 · 2 min read · 5 views

Dollar index falls 0.5% this week, marking biggest drop since April

Key Takeaways

•The U.S. dollar is set for its biggest weekly drop since April, falling 0.5% due to weak job growth data.
•The unemployment rate decreased to 4.2% in June, primarily due to a drop in labor force participation.
•Traders now see a 46.8% chance the Fed will keep rates steady at its September 15-16 meeting, up from 35.8%.
•The British pound gained 1.2% this week, reaching $1.3357 amid easing political risks and soft U.S. labor data.
•Gold prices rose 1.3% to $4,174.21 per ounce, marking a potential weekly gain after four weeks of decline.

U.S. dollar heading for biggest weekly drop since April,down 0.5%. Weak job growth data dampening hopes for quick Fed rate hike. Jobs slowing sharply in June,with downward revisions for past two months. Labor market softening.

Unemployment rate dipped to 4.2% from 4.3% in May. But mainly because fewer people in workforce,lowest participation in five years. Traders adjusting forecasts,now seeing 46.8% chance Fed holds rates steady at meeting September 15-16 . Up from 35.8% just day before.

In currency markets,euro gaining against dollar. Traders reacting to U.S . jobs report. Euro trading higher . Immediate resistance at 1.1475,support at 1.1368.

British pound set for biggest weekly rise against dollar in 12 weeks. Helped by easing political risks,soft U.S . labor data. Pound up 0.1% to $1.3357,weekly gain of 1.2%. Resistance at 1.3389,support at 1.3343.

Canada's dollar slipped slightly,uncertainty about economy persists. Home sales rising in Greater Toronto Area for fourth month,but loonie 0.1% lower at 1.42 per U.S. dollar. Investors expecting at least one Bank of Canada rate cut by year-end,some speculating on second cut.

In Japan,U.S. dollar initially fell against yen but bounced back as traders adjusted. Japan's Finance Minister Satsuki Katayama said government in regular talks with U.S. on forex issues. Yen showing resilience after 40-year lows,helped by weaker dollar.

Commodities front,gold prices up,eyeing weekly gain after four weeks of losses. Spot gold up 1.3% at $4,174.21 per ounce,U.S. gold futures for August delivery up 1.5% to $4,186.80 . Rise due to lower expectations for near-term Fed rate hike after weak jobs report.

Oil prices steady,U.S. benchmark at $68.78 a barrel . Investors hopeful about U.S.-Iran peace talks,which could ease geopolitical tensions,avoid supply disruptions .

European equities hit record intraday highs,boosted by cyclical stocks,less fear of quick U.S . rate hike . But UK's FTSE 100 down 0.40%,Germany's DAX down 1.31%,France’s CAC down 0.71%. U.S. markets closed Friday for Independence Day holiday…

#business