US Dollar Trades Weaker Ahead of NFP
Arslan Butt • 1 min read
The weakness in the US dollar continued as it fell on Thursday over increased expectations of a Fed rate cut this month. At the time of writing, the US dollar index DXY is trading at 96.76.
The meeting driver behind this move has been the decline in US bond yields, which have fallen to the lowest levels in 2.5 years. The yield on the 10-year US Treasury note has fallen to 1.939% early on Thursday morning.
The market sentiment is also weighing the US dollar down lately, with hopes of a quick resolution in the US-China trade dispute fading fast. Markets are also awaiting cautiously for the US NFP figures due to release on Friday.
Although, a positive figure would most likely fail to overtake the rate cut sentiment prevailing in the markets as a result of low inflation and make much of an impact on the dollar.