Ahead of the Non-Farm Payroll report, the U.S. dollar weakens, and market volatility intensifies
On the eve of the highly anticipated Non-Farm Payroll report, the U.S. dollar index has shown signs of weakening. According to Odaily Planet Daily and Jinshi Data, the dollar index DXY fell by 12 points in the short term, reporting 97.9. This change has triggered a chain reaction in the foreign exchange market, with significant fluctuations in major currency pairs.
The USD/JPY has breached the 148 mark, with an intraday decline of 0.32%. The yen is showing some strength at this moment, attracting the attention of some investors. Meanwhile, the EUR/USD has performed well, successfully rising above 1.17, with a 0.45% increase for the day, as the rebound of the eurozone currency brings new trading opportunities to the market.
The Non-Farm Payroll report, as a key data reflecting the state of the U.S. employment market, has always had a significant impact on the movement of the U.S. dollar. Market participants are full of expectations for this report, while also remaining cautious due to uncertainty. The weakening of the dollar before the report's release reflects, to some extent, investors' concerns about potentially disappointing employment data or position adjustments being made before the data is released.
For foreign exchange traders, the current market volatility presents both potential profit opportunities and increased risks. Before the official announcement of the Non-Farm Payroll report, market sentiment is quite sensitive, and any slight movement could trigger rapid changes in exchange rates. Investors need to closely monitor the subsequent release of Non-Farm data and the market's further reactions after the data is published to better grasp the direction of the currency market.
