Today market analysis on behalf of Milad Azar Market Analyst at XTB MENA
The US Dollar could remain under pressure as it hovers at a four-month low after declining more than 3% last week. Mounting economic concerns in the United States have weighed on the greenback, with Friday’s disappointing Nonfarm Payrolls report and a surprise uptick in the unemployment rate reinforcing fears of a slowing labor market.
Adding to these economic challenges, President Donald Trump hinted in a weekend interview that a recession this year remains possible due to ongoing trade tensions. Consequently, traders could seek alternative safe-haven assets, such as the Japanese Yen and the Swiss Franc, which could further pressure the US currency.
Meanwhile, 10-year US treasury yields declined below 4.3%, as investors assessed the latest mixed economic data. This week’s inflation numbers could play a crucial role in shaping expectations of the Fed’s next move. Resilient inflation could support US treasury yields and the dollar. Conversely, softer numbers may fuel expectations of a dovish Fed, increasing selling pressure on the currency.