The US dollar continues to lose ground against other major currencies. The index measuring the performance of the greenback against a basket of its peers fell below 96.5 for the first time this month, extending the negative momentum seen in recent sessions. Retail sales data released on Tuesday came in below expectations, pointing to stagnation in consumer spending and reinforcing market perceptions that the world’s largest economy is slowing. Against this backdrop, the case for at least two Federal Reserve interest rate cuts in 2026 has strengthened, adding further pressure on the dollar. Investors are now focused on the delayed release of January’s Nonfarm Payrolls report, due later today. Alongside inflation figures scheduled for Friday, the labour market data will play a key role in shaping medium- to long-term expectations for the Federal Reserve’s policy path. Should the figures confirm signs of a cooling US economy, there may be scope for further dollar weakness.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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