After the United States (US) NFP employment report published at the end of last week was digested, the market at the beginning of this week began to be hit by fear due to concerns about the risk of a global economic recession.
Expectations for the Federal Reserve (Fed) to lower interest rates at its September meeting, even analysts are beginning to see more aggressive rate cuts on the way.
Some even think that the current panic situation in the market will force the Fed to hold an emergency meeting, as it happened during the Covid-19 situation before.
The US dollar experienced continued declines at the start of the week on expectations that the Fed is moving to ease their monetary policy.
However, it should be noted that the market's risk-off sentiment situation can also give an advantage to the US dollar as a safe-haven currency.
Investors will act to sell holdings of assets owned to save cash in preparation for emergency periods.
Concerns about the risk of a global recession also dragged down other financial markets including stocks, commodities and crypto.
The majority of investors take a cautious step by withdrawing from the market to avoid the risk of greater losses.
The shares of the world's giant companies are also reported to have suffered a 'scary' decline, making investors more cautious this week.
Reviewing economic data, the ISM survey's US services PMI published in the New York session yesterday met forecasts to be above the 50-point mark for July, showing a recovery from the previous month's contraction.
While the market's focus on Tuesday is on the results of the Reserve Bank of Australia (RBA) policy meeting which is expected to keep interest rates at 4.35%.
