Market sentiment returned to riskiness in last week’s closing trade, which mostly revolved around the decisions of United States (US) President Donald Trump.
Last Friday, Trump announced that he had terminated trade negotiations with Canada immediately in response to the digital services tax on technology companies.
However, over the weekend, Canada’s Finance Minister stated that they would cancel the tax to advance trade negotiations with the United States.
In addition, Trump also touched on the conflict in the Middle East with a new warning.
Strongly criticizing Iran’s Supreme Leader, Ali Khamenei, Trump canceled plans to lift sanctions on Iran and now threatens to bomb Tehran.
The renewed concerns in the market have prompted an initial recovery of the US dollar in the final sessions of last week.
The US dollar had previously shown a significant decline as the war conflict temporarily subsided and pushed the US dollar to its lowest level in more than 3 years.
The US dollar's decline was also driven by expectations that the Federal Reserve (Fed) is preparing to implement an interest rate cut.
So, this week's US employment data components including JOLTS and ADP will provide an early picture before the full focus is on the NFP report on Thursday.
Investors will also remain wary of market volatility at the end of June and the close of trading for the second quarter of 2025.
