Fundamental Overview

The USD weakened across the board last Friday following the soft US NFP report

The data showed some more labour market cooling with an increase in the unemployment rate and a decrease in wage growth

We basically have an economy that is slowing but still growing. We will see if the market will be able to keep the positive sentiment on soft landing hopes or start to worry about a recession. Yesterday, Fed Chair Powell testified to Congress but he didn’t offer anything in terms of monetary policy even though the data shows more weakness//p>

How this will affect me

As an individual, the weakening USD can have both positive and negative effects on your finances. If you are planning a trip abroad, a weaker USD means you may have to spend more on foreign currencies. However, if you are involved in exporting goods or services, a weakening USD can make your products more competitive in international markets. It’s important to keep an eye on how the USD’s movements may impact your specific financial situation.

How this will affect the world

The global economy will also feel the effects of a weaker USD. A depreciating USD can lead to increased demand for US exports, boosting the country’s economic growth. However, it can also lead to higher inflation in other countries that rely heavily on imports from the US. Central banks around the world may need to adjust their monetary policies in response to the USD’s movements to maintain stability in the global economy.

Conclusion

In conclusion, the recent weakening of the USD following the soft US NFP report has implications for both individuals and the global economy. It’s important to stay informed about the factors driving these currency movements and how they may impact your financial well-being. As we continue to monitor the economic data and central bank actions, we can better prepare for any potential changes in the financial landscape.