The US dollar ended last week trading better, but still showed one of its worst weekly performances this year.
The US dollar has been on a downward spiral since the previous week, starting with the reaction to the US (US) NFP jobs report that declined and suggested the possibility of more interest rate cuts by the central bank towards the end of 2025.
In addition, weak data readings involving the housing market and the services sector also reflect the slow growth of the US economy at the moment.
Investors are also assessing the situation of the Federal Reserve (Fed) leadership change as nominations are in full swing.
President Donald Trump this week nominated Council of Economic Advisers Chairman Stephen Miran to serve in the last few months to fill the vacancy at the Fed while the White House continues the search for a candidate for the new Fed Chair.
Fed Governor Christopher Waller, who previously voted for an interest rate cut at the previous meeting, is seen as a leading candidate to replace Jerome Powell as the new Chairman of the central bank.
This speculation is also a factor that increases expectations for further interest rate cuts in the US and will also add pressure to the US dollar.
For further guidance, US inflation data to be published this week will be the main focus of the market.
