The US Dollar (USD) Index experienced a significant increase in the past week, rising over 2% and achieving its largest weekly gain of 2024. As trading commenced on Monday, the index continued to consolidate around the 102.50 level. Economic data releases later in the day will include Eurostat’s Retail Sales figures for August, while the US will provide the Consumer Credit Change data for the same month. In addition, several officials from the Federal Reserve, particularly Governor Michelle Bowman, are scheduled to speak during the American trading hours.
The recent strength of the USD is largely attributable to positive employment statistics released on Friday. The Bureau of Labor Statistics reported a Nonfarm Payroll (NFP) increase of 254,000 for September, significantly outpacing the expected rise of 140,000. Furthermore, the unemployment rate saw a decline to 4.1%, down from 4.2%.
Meanwhile, the EUR/USD pair continued its downward trajectory on Friday, reaching its lowest point since mid-August at approximately 1.0950. Despite attempts at recovery in the early European session, the pair remains below the critical 1.1000 threshold.
In the GBP/USD market, the pair initially dipped below the 1.3100 level following the US labor market data release but later rebounded to end the day unchanged. As of Monday morning, GBP/USD is trading within a narrow range slightly above 1.3100.
The Bank of Japan (BoJ) released a quarterly report indicating improved economic assessments for two of its nine regions, noting a moderate recovery across the country. Following a gain of over 1% on Friday, USD/JPY experienced a slight decline and is trading just below 148.50.
Despite the strengthening USD, gold prices faced modest declines over the past week. The market remains under pressure, with XAU/USD trading in negative territory below $2,650, even as safe-haven demand supports the metal.
