US Dollar Heads for Weekly Weakness
The US dollar weakened as market expectations for a potential Federal Reserve interest rate hike eased. The DXY dollar index fell 0.1% to 100.748 and remains on track for weekly weakness after Thursday's disappointing US jobs report.
Bas Kooijman, CEO and asset manager of DHF Capital, believes the dollar still has the potential to close the week in negative territory. Looking ahead, market participants will be closely monitoring the ISM Services PMI data, the FOMC meeting minutes, and weekly jobless claims for further clues regarding the direction of the Fed's monetary policy.
In addition to economic data, developments in talks between the United States and Iran are also of concern. If negotiations show progress, demand for the dollar as a safe-haven asset could weaken and put additional pressure on the greenback. However, if talks encounter obstacles, the dollar could again draw support from cautious market sentiment.
Source: Newsmaker.id