Today there are no trading signals due to the NFP report.
The dollar nursed losses against major currencies on Friday ahead of the U.S. non-farm payrolls report, which some investors fear could reinforce the view that economic momentum is slowing.
Sentiment has turned against the greenback due to a combination of rising U.S. coronavirus infections, a steady decline in Treasury yields, and a lack of consensus in Washington over additional fiscal stimulus.
Analysts say the dollar will continue to fall, particularly against the euro, the yen and Swiss franc, as expectations for a V-shaped recovery from the coronavirus epidemic fade and investors take a more sanguine view of markets.
Non-farm payrolls due later on Friday are widely expected to show U.S. jobs creation slowed in July from the previous month, indicating a resurgence in coronavirus infections is undermining the world’s largest economy.
Earlier this week, the five-year Treasury yield hit an all-time low, and the benchmark 10-year yield fell to its second-lowest ever, which has become another reason to shun the greenback.
The dollar index against a basket of major currencies last stood at 92.816, close to a two-year low.
U.S. Republicans and Democrats have so far failed to reach an agreement on the cost of fiscal stimulus measures that many investors say is necessary to prevent the economy from losing more momentum.
The Antipodean currencies also benefited from the broad-based weakness in the greenback.
Things couldn’t be much worse in the US ahead of the release of the monthly Nonfarm Payroll report. A record economic contraction in Q2 coupled with a dovish US Federal Reserve last week, as the central bank remained on hold and passed the ball to lawmakers, which, by the way, can’t found common ground to agree on a new coronavirus aid-package.
Meanwhile, the pandemic keeps taking its toll on the US, with almost 5 million cases in the country and the death toll above 161K. The coronavirus spread gives no signs of receding, with the country reporting around 55,000 new cases in the last 24 hours. The cherry on the cake is the upcoming presidential election to take place in November this year, with all the political turmoil that it carries within.