If cracks appear in the labor market, the US dollar rally may come to a halt
According to Odaily, Rania Gule, an analyst at the brokerage firm XS.com, stated that unless Friday's non-farm payroll report is stronger than expected, the current rally of the US dollar may be limited and only temporary. In her report, she pointed out that the dollar is "in a vulnerable position," and any signs of further weakness in the labor market could push it lower. She believes that despite recent weak data, the dollar has still risen slightly, indicating that investors prefer to hold their positions and wait for clearer prospects. This behavior reflects a temporary balance between concerns about a slowdown in the US economy and the dollar's role as a safe haven, a balance that could "be quickly broken by any unexpected changes in labor market data." (Golden Ten Data)
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