The US dollar did not continue its decline in early trading yesterday after the market witnessed a drastic fall in the value of the king of currencies last Friday.
Market movement slowed on Monday yesterday as investors were still digesting the latest US NFP employment report when the reading for July showed a decline in the labor sector.
In fact, it also caused frustration for President Donald Trump, who fired a key official related to the report, the US Bureau of Labor Statistics Commissioner, Erika McEntarfer, to be replaced with someone more qualified on the grounds that the employment figures were manipulated.
Confidence in the US economy only lasted temporarily last week, which also supported the excellent performance of the US dollar before the NFP data came out.
Expectations for an interest rate cut by the Federal Reserve (Fed) to be implemented at the September meeting are back while the central bank is still in the policy easing phase.
In addition to Trump's dismissal, investors are also seeing volatility in US politics with the news of the resignation of Fed Governor Adriana Kugler who stepped down early from her term.
The focus today (Tuesday) is on the release of the US services PMI survey by the ISM in the New York session.
The survey figure is expected to rise to 51.5 points, in contrast to the survey data for the manufacturing sector published last week which fell below the 50 point level indicating a contraction.
The development of global tariffs is also still being watched after implementation resumed after the end of the Trump suspension period on August 1.
