US Dollar remains under mild bearish pressure.
On Monday, the US Dollar (USD) struggles to find demand, and the US Dollar Index (USD) remains within striking distance of the multi-month low touched below 101.00 on April 14.
Later in the day, investors will pay special attention to the US Federal Reserve’s (Fed) Senior Loan Officer Opinion Survey. Which might give insight on the impact of restrictive monetary policy on financing conditions. This publication may influence the USD’s performance against its counterparts in the late American session.
Despite an encouraging April jobs data, the US Dollar Index fell last week.
In the wake of banking troubles, the Fed’s dovish rhetoric. In the policy statement prompted the USD to fall in the second part of the week. Prior to the weekend, financial stocks saw significant comeback gains. While the USD It struggled to keep its position as risk sentiment improved. The US Bureau of Labor Statistics (BLS) stated on Friday. That Nonfarm Payrolls increased by 253,000 in April, well above the market’s projection of 179,000. On the negative side, the 236,000 rises in March were reduced down to 165,000.
The unemployment rate fell to 3.4% in April, but annual wage inflation. As measured by average hourly earnings, increased to 4.4% from 4.3%.
According to labor market data, “labor supply has increased since spring 2022, but labor demand has not.” “There are no job vacancy statistics for April,” said Ulrich Lichtman, Commerzbank’s Head of FX and Commodity.
“However, there is no reason to believe that the large number of new entrants is a cause for concern.” Hires are anything but a continuation of this trend: vacancies are being filled. This, however, does not advocate for additional monetary policy pressure and, as a result, more USD carry and a stronger Dollar.”
The Dow Jones Industrial Average climbed 1.65% on Friday, while the Nasdaq Composite gained over 2%.The US economic calendar will include March Wholesale Inventories data.
The Federal Reserve’s Loan Office Survey may have an influence on the USD’s performance on Monday.
Market players will also be watching Fed members’ comments closely. Following Friday’s rally, the benchmark 10-year US Treasury note rate remains above 3.4%.During the European trading hours on Monday, US stock index futures traded mixed.
According to the CME Group Fed Watch Tool, markets are pricing in a more than 90% chance that the Fed will leave its policies unchanged. At the next policy meeting, the rate will be unchanged.
The Bureau of Labor Statistics (BLS) will issue the April Consumer Price Index (CPI) figures on Wednesday.
