The US Dollar rose slightly against the euro and yen on Monday as traders awaited a busy week of economic reports. Investors are cautious ahead of the release of delayed U.S. data following the federal government shutdown.
Market response to President Donald Trump’s tariff reversal on over 200 food products was muted. Analysts said the move was expected due to cost-of-living concerns.
Traders are closely watching the September nonfarm payrolls report, scheduled for Thursday. “They are just waiting for the next shoe to drop,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “The overriding factor is the dollar and U.S. interest rates.”
Despite recent signs of weakness in the U.S. economy, investors have lowered expectations for a Federal Reserve rate cut next month. Markets now price in a 42% chance of a 25-basis-point cut in December, down from over 60% earlier this month.
Goldman Sachs analysts noted that this week’s data might not provide immediate clarity. However, medium-term trends may reveal enough downside risks to the labor market to influence the Fed’s policy, potentially putting pressure on the US Dollar.
Joseph Trevisani, senior analyst at FX Street, said, “We have to wait for concrete U.S. employment news. If jobs data don’t improve, speculation about further rate cuts could resume.”
The euro fell 0.32% to $1.1582, while the yen declined 0.47% to 155.255 per US Dollar. The Japanese currency remains near a nine-month low, raising concerns over possible market intervention to curb further declines.
Sterling also slipped to $1.3161 against the dollar, amid speculation over the upcoming UK budget. The Swiss franc retreated from a one-month high, last trading at 0.7957 per US Dollar, as global market jitters eased slightly.
Investors remain cautious, focusing on upcoming economic releases to gauge the direction of the US Dollar and global currencies.
In other news read more about: Rupee Gains Ground Against the US Dollar
