The US dollar has continued to trade at weaker levels after falling sharply following Fed Chairman Powell’s speech. MUFG Bank economists report that a strong Nonfarm Payrolls report is needed to reverse the dollar’s slide.
Financial conditions continue to ease
“The lack of a strong pullback against the easing of financial conditions has given market participants the green light to continue chasing recent risk trends, including a weaker US dollar.”
“The latest US economic data releases yesterday were also unfavorable for the dollar, showing a further loss of growth momentum in the labor market and a worrying drop in business confidence.”
“The events leave the US dollar in desperate need of a strong NFP report tomorrow to stem further losses.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
