Anna 
The US Dollar (USD) remains robust against its currency counterparts as the new week commences, building on the impressive gains witnessed on Friday. The currency’s resilience is fueled by a sombering market sentiment stemming from escalating geopolitical tensions. Federal Reserve (Fed) Chairman Jerome Powell’s hawkish statements further contribute to the USD’s strength, with investors now eagerly awaiting the release of the ISM Services PMI report.
The USD Index (DXY) exhibited a notable surge of nearly 1% on Friday, propelled by the monthly report from the Bureau of Labor Statistics. The report revealed that Nonfarm Payrolls experienced a remarkable increase of 353,000 in January, surpassing market expectations of 180,000 by a significant margin.
In a televised interview with CBS News’s 60 Minutes on Sunday, Powell echoed his sentiments from earlier remarks, stating that the March policy meeting is likely too early to instigate rate cuts confidently. He emphasized the potential for an earlier move if signs of labor market weakness or a convincing decrease in inflation emerged. Powell’s remarks solidified the USD’s position, propelling the DXY to its highest level since early December, surpassing 104.00 in the early stages of the Asian trading session. The index retraced slightly during the European morning.
As geopolitical tensions escalate and Powell’s words linger in the market, the USD’s current robustness suggests that it continues to be a focal point for investors navigating uncertainties in the global landscape. The impending ISM Services PMI report is anticipated to provide additional insights into the currency’s trajectory in the coming sessions.
