"The US dollar returned to the upside as geopolitical fears rebounded after US President Trump's address to the nation. The rhetoric fuelled risk aversion and flows toward the dollar while oil prices surged."
"Better-than-expected US economic data has added to the bullish outlook. Manufacturing activity showed renewed strength, led by production gains but accompanied by rising input costs and slower deliveries."
"Looking ahead, the upcoming non-farm payrolls report could be a critical catalyst for both the dollar and Treasury yields. If employment growth surprises to the upside, markets may price in a more hawkish stance."
"Given these dynamics, we maintain a neutral and cautious stance on currency exposure until clearer breakouts and more definitive trend direction emerge."
The US dollar gained strength as geopolitical tensions rose following President Trump's address, leading to increased risk aversion. Oil prices surged, and concerns about inflation due to Middle East tensions pushed US Treasury yields higher. Positive US economic data, including strong manufacturing activity and resilient retail sales, contributed to a bullish outlook. The upcoming non-farm payrolls report may significantly impact the dollar and Treasury yields, with potential for a hawkish or dovish market response. A cautious stance on currency exposure is advised amid ongoing volatility and uncertainty.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]