Societe Generale: If the labor market cools, the dollar could remain weak

In a report, Socie ́ te ́ Ge ́ ne ́ rale said upcoming U.S. economic data could confirm that the labor market is steadily cooling and provide support for the Federal Reserve to cut interest rates and the dollar to weaken. "If the trend is a gradual easing of the labor market, then that would point to a rate cut, but not at the rate currently expected," said FX strategists at Socie ́ te ́ Ge ́ ne ́ rale. That could inject some volatility into the FX market, they said, though the bank still recommends selling dollars on any rebound unless the job market stops easing altogether.