By George Pavel

The US dollar rebounded slightly after a series of losses but remained under pressure, poised for a third weekly loss as optimism surrounding trade policies mounts. While US President Donald Trump’s tariff threats had initially strengthened the greenback, only limited measures were ultimately implemented, signaling a softer stance. This shift has encouraged investors to flock to riskier assets, weighing on the dollar.

While the US dollar could find some support as recent Fed minutes and Chair Jerome Powell’s comments point to a hawkish stance, an unexpected rise in initial jobless claims hinted at a cooling labor market, dragging U.S. Treasury yields lower, with the 10-year note struggling to stay near 4.5%. Today’s PMI and consumer sentiment data could play a crucial role in shaping market sentiment. Weak data could lead to earlier rate cuts, which could in turn drive yields and the dollar down.

Pavel General Manager at Naga.com Middle East