Heading into the end of the week, the US dollar is seen to be increasingly under pressure as the latest economic data comes with surprising readings.
The focus on one of the components of the United States (US) employment, published in the New York session yesterday, is the ADP data report that calculates the increase in private employment in June.
Missing the forecast of an increase of 99,000, the published figure was -33,000 indicating that the private sector is further reducing its workforce.
This gives a bad initial picture ahead of the NFP employment report to be published in the New York session tonight, with forecasts for all three components in the report including the unemployment rate being bleak.
In addition, the assessment of the employment reading increases the probability of an interest rate cut by the central bank.
However, the Chairman of the Federal Reserve (Fed) in his speech during the event in Sintra maintained a wait-and-see stance, with a decision to be made based on the latest data available.
Attention is also focused on the passage of President Donald Trump's tax and spending cuts bill by the US Senate and now awaiting final approval in the House of Representatives.
The implementation of the bill is expected to increase the US national debt by $3.3 trillion.
As the war issue subsides somewhat, investors are watching the development of global tariff issues with the latest, Trump announcing trade negotiations with Vietnam to lower tariffs.
The Pound stole the spotlight in the New York session yesterday with a sharp drop in value due to political uncertainty in the UK.
UK Prime Minister Keir Starmer is being urged to reshape his government's welfare reform plan after facing opposition from within his own party.
