The US Dollar (USD) is stable to slightly firmer on the session, but is heading for its first weekly decline since late November in DXY terms. Trading appears relatively sluggish heading into the weekend, as market participants watch Monday’s opening and ponder what might follow, says Shaun Osborne, chief FX strategist at Scotiabank.
Mixed USD vs. Major Pairs
“Strongly bullish sentiment and positioning may leave the USD prone to profit-taking if the first hours/days of the new Trump administration fail to deliver the type of policy initiatives the president-elect has promised. Global stocks are firmer as “Bonds are also up a bit, with Gilts outperforming slightly after more weak UK data. Crude oil prices are strengthening modestly.”
“US Treasury Secretary nominee Bessent breezed through his confirmation hearing yesterday, telling lawmakers that the Fed should maintain its independence in monetary policy and arguing that tax cuts should be extended to avoid a sudden stop to the US economy.”
“He also said that exchange rates will cushion the impact of tariffs on American consumers, suggesting that he agrees with the appreciation of the USD in response to the tariff action deployed by the incoming administration. Fed Governor Hammack said in an interview with the WSJ that the Fed can be “very patient” with more rate cuts.”
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.
