"The US dollar was trading sideways on Wednesday after two sessions of losses. The currency continued to face downside risks as persistent concerns over rising tensions between the United States and Europe weighed on investor sentiment. President Donald Trump's aggressive stance on Greenland prompted a broader reduction in exposure to dollar-denominated assets. This risk-off behaviour has been reflected in treasuries, where yields recently surged across the curve, pushing the 10-year yield to multi-month highs."
"While yields have retreated slightly today, the market remained vulnerable as geopolitical frictions and policy uncertainty persisted. From a macro perspective, the latest ADP weekly data showed US private employers added an average of just 8,000 jobs per week in the four weeks ending December 27, down from the previous period. It could reinforce expectations of a softer labour market and further pressure the greenback."
The US dollar traded sideways after two sessions of losses as investors reduced exposure to dollar assets amid rising US-Europe geopolitical tensions. President Donald Trump's stance on Greenland contributed to risk-off behaviour. Treasury yields surged across the curve, pushing the 10-year yield to multi-month highs before retreating slightly, leaving markets vulnerable to further moves. ADP weekly data showed US private employers added an average of just 8,000 jobs per week in the four weeks ending December 27, suggesting a softer labour market. Market focus shifts to upcoming US GDP, PCE inflation, and initial jobless claims, which could inject volatility and reshape rate expectations.
Read at London Business News | Londonlovesbusiness.com
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