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US dollar falls, major non US currencies collectively rebound - market pays attention to US economic data guidance
forex9 months before
Summary：This week, the US dollar index fell from a high level, and major currencies such as the euro, pound, and yen rebounded to varying degrees due to the latest economic data from the United States and dovish statements from Federal Reserve officials. The market is focused on the upcoming US non farm payroll report, which is expected to provide key guidance for the next direction of the foreign exchange market. Analysts believe that if the employment data falls short of expectations, the US dollar may continue to be under pressure, and non US currencies are expected to continue their upward trend.
There have been significant fluctuations in the foreign exchange market this week. The US dollar index began to decline after reaching its recent high at the beginning of the week and fell to around 104.2 on Thursday. At the same time, the euro against the dollar has returned above the 1.09 level, the pound against the dollar is approaching 1.28, and the yen has rebounded slightly from the 160 level.
The main reason for the weakening of the US dollar is the recent underperformance of US economic data compared to expectations. The latest ISM manufacturing PMI has decreased month on month, and several officials from the Federal Reserve have made dovish speeches, suggesting that the possibility of interest rate cuts within the year still exists. In addition, the expectation of interest rate hikes by the European Central Bank and the Bank of England has also supported the rebound of the euro and pound.
The focus of market attention has shifted to the upcoming US non farm payroll report to be released this Friday. Analysts say that if job growth slows down or the unemployment rate unexpectedly rises, it may prompt the market to increase its bets on the Federal Reserve's interest rate cuts this year, putting further pressure on the US dollar. On the contrary, strong employment data may boost the short-term trend of the US dollar.
Looking ahead, investors need to closely monitor the core inflation data in the United States and the latest statements from major central banks, as short-term fluctuations in the foreign exchange market may intensify. For forex traders, it is necessary to strengthen risk management and flexibly adjust trading strategies at the current stage.
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