Investors are increasingly concerned about the overall economic conditions, which are showing signs of deflation and a slowing labor market in the U.S., making a rate cut in September more likely.

Private sector employment reports came in lower than expected, with June seeing an increase of 150,000 jobs compared to the forecasted 160,000. Additionally, the weekly jobless claims stood at 238,000, higher than the expected 235,000.

Despite this, Federal Reserve officials remain intent on maintaining the interest rate but have begun expressing concerns over labor market issues due to rising unemployment. Furthermore, investors are closely watching the upcoming non-farm payrolls report scheduled for release this week.

Source: Fxstreet