Dollar Weakens Ahead of US Data
straight day. The market is cautious due to a series of important US economic data releases this week—some of which were delayed due to the partial government shutdown.
The main focus is the January jobs report, scheduled for release on Wednesday. Several recent indicators are beginning to point to a cooling job market, which is why investors are holding large positions ahead of the official figures. December's retail sales data is also eagerly awaited to gauge the strength of US consumer spending.
Inflation data is also crucial. The delayed January CPI release is scheduled for Friday. The combination of jobs and inflation data will serve as the market's "compass" for interpreting the Fed's next steps, particularly regarding when interest rate cuts will actually begin.
For now, market expectations remain: interest rates will likely be on hold at the March meeting. A cut is expected to begin in June, with the possibility of a further cut around September, depending on how quickly inflation and the economy slow down.
The dollar is also under pressure as risk appetite improves. Technology stocks, precious metals, and crypto stocks have begun to rebound, encouraging investors to exit defensive positions. Meanwhile, the dollar's movement against the yen remains volatile after the landslide victory of Prime Minister Sanae Takaichi's coalition in Japan raised expectations of more expansive government spending—a factor that has contributed to volatility in the currency market. (asd)
Source: Newsmaker.id
