Dollar Weakened by Rising Yields and Energy Price Drop
The US dollar is under pressure as yields rise and energy prices fall. The pressure on the dollar has been exacerbated by reports that France proposed releasing 50 million barrels of diesel from Europe, which could include the US. This move aims to address the demand for fuel in Europe.
The recent rise in yields has put pressure on the dollar, causing it to weaken against major currencies. The USD index is currently trading around the lower end of its range, but analysts note that a significant bout of pressure would require further progress in US-Iran relations or confirmation of the crude stock release.
Despite the expected addition of 90,000 non-farm payrolls in September, analysts are cautious about the data. The August payroll additions may have been subject to favorable seasonal adjustments, and the unemployment rate is expected to hold at 4.1%.
The Swiss franc (CHF) has emerged as a strong performer among G10 currencies, driven by an unwind of its recent carry trade and haven-related demand stemming from the French fiscal situation.