After evaluating the US (US) NFP employment report that was published at the end of last week, investors are seen maintaining expectations for the Federal Reserve (Fed) to implement an interest rate cut as early as the September meeting.
The policy easing phase by the central bank is also expected to be extended until 2026, which could put renewed pressure on the US dollar's previous recovery.
Investors are also paying attention to President Donald Trump's nomination for the Fed board, including his choice to replace the Bureau of Labor Statistics Commission who was fired after being dissatisfied with the published NFP report.
In addition, global tariff developments are being watched with the implementation of Trump's tariffs having resumed after the extended suspension period expired on August 1.
With the factors of uncertainty regarding the US economy, it is seen as difficult for the US dollar to perform well in the near future.
The gains achieved last week are likely to gradually decrease if US economic data after this comes with gloomy readings.
Observed in the New York session yesterday, the ISM survey data for the US services sector also recorded a smaller decline than expected.
Forecasted to increase to 51.5 points, the survey for July fell to 50.1 points, indicating a slowing expansion in the sector.
The US dollar has still been moving passively since the opening trade of the week until the Asian session this morning (Wednesday) in a market atmosphere that remains risky.
