US Dollar Cautious as Markets Anticipate NFP Release

Ahead of the release of the much awaited NFP figures, the US dollar is trading cautious against its major peers over worries that economic

US Dollar Cautious as Markets Anticipate NFP Release

Ahead of the release of the much awaited NFP figures, the US dollar is trading cautious against its major peers over worries that economic recovery in the US has possibly stalled even as coronavirus infections continue to rise. At the time of writing, the US dollar index DXY is trading around 93.12.

The US dollar, which had previously made significant gains in the initial stages of the pandemic, is losing its sheen over concerns about the ongoing increase in the number of cases and deaths due to coronavirus in the US. In addition, falling Treasury yields and the failure of the Congress to finalize the next round of stimulus measures are also weighing on the greenback.

While economic data over the past couple of months indicated that the US economy was working its way back towards recovery as lockdowns were eased, recent data releases have been more disappointing. This has raised concerns that the pace of recovery has slowed down in the US, even as other economies, especially in Europe, appear to be faring better.

Economists expect today’s NFP report to reveal a slowdown in job creation for the month of July. If the figures come out worse than that of the previous month, it could send the US dollar further lower, reinforcing markets’ fears that the resurgence in infections has rattled economic progress in the US again.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers