The dollar is weaker against a basket of currencies this morning. This is due to a calmer global risk environment and expectations that the Federal Reserve will pause its interest rate hikes later this year.
News that China is starting to relax Covid-19 measures has eased global growth concerns and has decreased the dollar’s ‘safe-haven’ appeal. As well as this, a shift in stance from the Federal Reserve, confirmed by meeting minutes released last week, is weighing on the dollar.
This week, we will hear from more Federal Reserve officials ahead of non-farm payroll data on Friday.
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