The global uncertainty and economic slowdown, that’s arguably been triggered by US President Donald Trumps implementation of trade tariffs, has so far played into the US dollar's hands. With the US dollar being considered a safe haven currency, investors have flocked to the greenback which has in-turn boosted its value.

But now there are talks of the next move from the US Federal Reserve Bank (Fed) being a rate cut, which could limit US dollar gains or even reverse its fortunes. There appears to have been a coordinated effort from members of the Fed to highlight the bank's willingness to cut rates if necessary. Earlier this month the Federal Reserve Chairman, Jerome Powell, said that the Central Bank would respond ‘as appropriate’ to counter the risks that the trade war between China and the US carry. Clients holding out for further US dollar gains should be wary of this as we could see a reversal of the greenback’s good fortunes.

Non-Farm Payrolls to take centre stage this afternoon

As it’s the first Friday of the month, US Non-farm payrolls and the Unemployment Rate will be released this afternoon at 13.30. This data provides a snapshot of the US economy and can be one of the busiest times of the month, so do feel free to get in touch if you wish to plan around this event.

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