US Dollar Trading Weak Over Rising Concerns of a Weak NFP Release
Early on Friday, the US dollar is trading close to a three-week low before the release of the US NFP report, in anticipation of weaker data pointing to potential slowdown in the economy. At the time of writing, the US dollar index DXY is trading at around 97.23.
The US dollar also slid lower against its major peers after Bloomberg reported that China has doubts on reaching a comprehensive, long-term trade agreement with the US on account of Trump’s unpredictable behavior. The trade war sentiment came back to focus during the previous trading session after Chile cancelled the upcoming APEC summit where the US and China were expected to sign the Phase 1 of their trade deal.
Although the US President Donald Trump commented that both sides will confirm a new venue for signing the interim deal shortly, the impact on the markets was almost negligible. Overall, the US dollar index DXY looks set for a weekly loss of around 0.55%.
On Wednesday, the Fed cut interest rates by 0.2% as markets were widely expecting. While the US dollar failed to make significant moves on the announcement, it did weaken into Thursday after the Fed came out sounding less hawkish than expected about the monetary policy.
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