The US Dollar Index (DXY) fell toward the 97.90 region on Friday, pressured by improving risk sentiment and easing safe-haven demand after reports suggested the United States (US) and Iran are still attempting to preserve a fragile ceasefire framework despite renewed military…
cidents in the Middle East. Market sentiment improved after US President Donald Trump stated that negotiations remain active and that both sides are trying to avoid a broader escalation around the Strait of Hormuz
The softer geopolitical tone reduced demand for the US Dollar (USD), allowing risk-sensitive currencies to recover ground. At the same time, Oil prices trimmed part of their gains, helping ease fears of another major inflation shock. The latest US Nonfarm Payrolls (NFP) report revealed that the US economy added 115,000 jobs in April, surpassing market expectations of around 60,000.
The Unemployment Rate remained stable at 4.3%. However, Average Hourly Earnings showed a monthly slowdown, strengthening the belief that inflation pressures may continue to ease, even as the labor market stays resilient. Additional downward pressure on the US Dollar emerged after the University of Michigan Consumer Sentiment survey experienced a sharp decline, reflecting households’ concerns about inflation and economic uncertainty.