US Dollar Holds Steady as Traders Wait for Rate Cut Cues from Today’s NFP Release
Arslan Butt • 1 min read
The US dollar is trading steady on Friday so far, with traders hesitant to make big moves until the NFP figures release later during the day. This month’s NFP data is especially important as investors look for guidance on the likelihood of the next rate cut by the Fed.
At the time of writing, the US dollar index is trading at 96.80, trading at around the same levels as on Thursday. A disappointing jobs report could increase the pressure on Fed to cut interest rates in its next meeting at the end of this month.
Meanwhile, US bond yields continued to decline and remained under the 2% level. On Thursday, the yield on the 10-year US Treasury note touched 1.9532%. As central banks around the world, including the Fed, turn dovish over a slowdown in economic growth and as inflation continues to fall in most developed economies worldwide, government bonds are losing their sheen as investors move towards other safe haven assets like gold.