The US dollar continued to strengthen on Wednesday's trading session in New York yesterday supported by the economic data of the United States (US) published.
Previously, the US dollar strengthened significantly following the tension in the Middle East that saw the sky of Israel rained by missiles launched by Iran.
The risky market situation has increased the demand for the US dollar as a safe-haven currency in addition to other safe assets also recording an increase.
Last night's ADP data report measuring private employment in the US showed a positive increase of 143,000 for September, beating forecasts of 124,000.
This bodes well for the NFP jobs report to be published at the end of the week.
If the valuation of the sector is strong, the Federal Reserve (Fed) is likely to change the direction of the path on their monetary policy.
The situation will be different compared to the aggressive policy easing measures at last September's meeting with an interest rate cut of 50 basis points.
Fed Chairman Jerome Powell previously still sees 2 more rate cuts to happen at the remaining meeting at the end of 2024.
However, he has also stated before that the decision of the next meeting will depend on the latest data present.
Therefore, the NFP employment report on Friday will be a critical indicator that needs attention.
The US dollar is currently hovering at a recent 3-week high, but investors need to be wary of the trade impact at the end of the week and any unexpected possibilities.
