US Dollar Continues to Fall Ahead of US NFP Report!


The US dollar is seen as maintaining its weak performance throughout the week with continued depreciation in the trading session of New York yesterday.

Investors will be cautious today for the close of trade this week ahead of the release of the United States (US) NFP jobs data report later this evening.

If the overall reading of the published data component is bleak, it will add more pressure to the declining US dollar.

This will follow dovish statements delivered by Federal Reserve (Fed) Chairman Jerome Powell on Wednesday and Thursday yesterday in Washington DC that interest rate cuts will be implemented this year.

Although he did not specify when interest rate cuts would be made, Powell signaled that a shift away from tight policy would begin this year while inflation developments would continue to be in focus.

Investors also looked at US jobless claims data published yesterday with the figure meeting forecasts, unchanged from the previous week at 217,000.

Among other things that came into focus on Thursday yesterday were the results of the European central bank's policy meeting which saw interest rates maintained at 4.50% as expected.

The euro suffered an initial dip in reaction to the meeting's decision, but managed to bounce back to record a fresh 7-week high against the US dollar.

The President of the European Central Bank (ECB) Christine Lagarde said that the central bank did not discuss interest rate cuts at its March meeting.

The euro is seen as still having a chance to continue its appreciation as the US dollar continues to decline.

The same is the situation for other major currencies, but it is necessary to be alert for any surprises in the trading sessions later this week with a focus on the NFP data.

Gold trade continues to hover at the latest high in history with a record high reached yesterday at $2,164.