USD Takes a Break, Where Are You Going?

thecekodok

 The USD stopped resting after recording a recovery in the previous session, with investors' attention now focused on another data in the New York session leading to tomorrow's NFP report.


US jobless claims are expected to show a slight improvement over last week with an increase of 200,000.


After a series of weak data released this week, there are fears of an economic recession in the US.


This was reflected in the sharp decline in the 10-year US treasury yield to its lowest level since September at 3.27%.


In contrast to the US dollar which still shows strength to rise again. However, this increase is expected to be temporary as there are no strong factors supporting the currency king.



At the start of the European session, the dollar index that measures the strength of the greenback traded steady at 101.96 against a basket of major currencies.


Meanwhile, the euro and pound remained flat around monthly highs with prices trying to continue the previously achieved strengthening.


In Asia, the Aussie and New Zealand dollars edged lower, failing to capitalize on a better-than-expected reading in China's firming Caixin services PMI data in March.


Additionally, the Canadian dollar traded little changed at around a 2-month high ahead of Canadian employment data to be released in the upcoming New York session.


The yen continued to gain strength from falling US bond yields, helping it trade higher against the US dollar.

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