US Dollar Trades Weaker Ahead of NFP

The weakness in the US dollar continued as it fell on Thursday over increased expectations of a Fed rate cut this month.


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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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