USD weakens as JOLTS job openings miss forecast at 7.437M

The US dollar index declined 0.2% following the release of June JOLTS job openings data, which came in at 7.437 million versus the 7.500 million estimate. The vacancy rate dropped to 4.4% from 4.6% last month, while the quits rate fell to 2.0% from 2.1%, signaling cooling labor market conditions. Arts, entertainment, and recreation sectors saw notable declines with 42,000 fewer openings, while government sectors also contracted. The softer-than-expected data reinforces expectations that the Federal Reserve may pause or slow its tightening cycle, putting downward pressure on the dollar. Major pairs like EUR/USD and GBP/USD saw modest gains of 0.15-0.20% in immediate reaction. Technical indicators suggest the DXY could test support at 101.50 if weakness persists. Traders are now focusing on upcoming Non-Farm Payrolls data for further confirmation of labor market softening.