According to BlockBeats, the U.S. dollar strengthened yesterday, primarily driven by a global sell-off of long-term bonds, with no other clear catalysts. Francesco Pesole, a foreign exchange analyst at ING, suggests that this driver may not sustain the dollar's strength ahead of key data releases and the anticipated Federal Reserve rate cut.
Following U.S. President Donald Trump's appointment of a new Bureau of Labor Statistics director, there may be increased attention on data beyond the official non-farm payroll figures. Pesole notes that the dollar's recent strength lacks strong fundamental support and predicts a potential "momentum reversal" before Friday's non-farm payroll report. The dollar index faces downside risks, and if the data does not align, the upward momentum of the dollar may struggle to continue.