The Dollar’s Winning Streak at Risk as Traders Await US Jobs Report
The dollar is set to end its six-week winning streak against major currencies as traders anticipate the release of the US jobs report. The report is expected to influence the Federal Reserve’s monetary policy in the coming months. The dollar dipped against the yen due to falling Treasury yields, but it held onto gains against the euro and sterling after central bank officials adopted a more dovish stance. The Chinese yuan strengthened after the country’s central bank reduced forex reserve requirements for the first time in a year. The US dollar index edged lower, driven by weak economic data and diminishing expectations of a rate hike in September.
Key Points:
- The US dollar is on track to end its six-week winning streak against major peers
- The dollar weakened against the yen, but held onto gains against the euro and sterling
- The Chinese yuan strengthened as the central bank cut forex reserve requirements
- The US dollar index edged lower as weak economic data dampened rate hike expectations
- Bitcoin lost its gains for the week after the SEC delayed a decision on bitcoin ETFs
Hot Take:
The US dollar’s winning streak is in jeopardy as weak economic data and diminishing rate hike expectations weigh on the currency. Traders are closely watching the US jobs report for clues on the Federal Reserve’s future policy decisions. Meanwhile, the Chinese yuan strengthened after the central bank’s move to boost the country’s currency. In the world of cryptocurrencies, bitcoin experienced a setback as the SEC delayed its decision on bitcoin ETFs. Overall, uncertainty and cautious sentiment dominate the markets.
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