The dollar saw its worst start since 2006 and the situation seems to worsen sooner. In terms of the US markets, Friday’s announcement of non-farm employment will be effective on the dollar. The data will be followed closely by those who are waiting for a rise in dollar. The Bloomberg Dollar Spot Index regressed although the remaining ten employment reports surpassed expectations in the months of February, March and May after nine months.
Specialists state that the Dollar does not react to surprises on the positive side, while it continues to weaken with negative news. The dollar closed the first half of the year with a series of four months of fell, which is the longest decline since 2011. The US dollar gave back its gains after the presidential election. The 6.6 percent fell in June has been the worst part of the US currency since 2010.
The Trump administration’s reduced optimism about fiscal expansion left the Fed’s policy and positive data shaded. It’s about the dollar, which weighs heavily with the decline in financial expectations.
The hawkish attitude quickly adopted by the central banks did not help the dollar. The US dollar declined more than 2 per cent against the euro in the last week, while it fell more than 2 per cent against the pound and Canadian dollar.
On the other hand, JPMorgan Chase analysts have some reasons to be optimistic about the future of the dollar. The analysts under the leadership of John Normand’s presidency recommend protecting the long position in the dollar. According to the analysts, cheap valuations compared to global interest rates are positive for the market, which is likely to see another Fed interest rate increase which may be made this year, and still positive growth outlook for long dollar positions.