USD Strength Amidst EURUSD Bearish Signals

The recent actions of the Federal Reserve, coupled with softer-than-expected US survey data and Friday’s underwhelming payroll figures, triggered a notable shift in US rates and the USD. Initially leaning towards potential rate hikes, market sentiments pivoted towards a more dovish stance, prompting a re-evaluation of USD positions.

The USD weakens despite holiday-thinned trading, prompting cautious optimism among traders. However, the broader trend favours a stronger dollar over the long term.