Market: The Dollar Hanging By A Thread Before US Figures

The calm before the storm. This is how one could describe the attitude of global markets at the beginning of this week. Stock markets around the world are oscillating, while the dollar seems firmly anchored. But for how much longer? As investors eagerly await crucial economic data from the United States, tension is mounting. The slightest number could trigger a chain reaction in the markets.

Markets on Hold: The Dollar Under Pressure

Global stock markets are in standby mode. Investors have their eyes on the United States, where two key indicators are about to be unveiled: the ISM survey on manufacturing activity and the non-farm employment data.

These numbers are essential to assess the health of the American economy and anticipate the next decisions of the Federal Reserve (Fed) in terms of monetary policy.

For now, global stocks remain stable, just below their record highs. The dollar, on the other hand, remains at a high level, close to a two-week peak.

Traders are cautious, anticipating a possible interest rate cut by the Fed. But how many basis points will actually be cut? A reduction of 25 or 50 points? The answer could well depend on the data that will be released this week.

The caution of investors is palpable. Yields on ten-year Treasury bonds have slightly declined, a sign of growing nervousness in the bond markets.

US stock futures show a slight decline, reflecting the prevailing uncertainty. In Europe, the STOXX 600 index follows the same path, with relative stability.

Yen Strengthens, Oil Under Pressure

Meanwhile, the Japanese yen is strengthening against the dollar, taking advantage of speculations about a potential interest rate hike by the Bank of Japan (BoJ).

This dynamic contrasts with the situation in the United States, where rate cuts are increasingly anticipated. The yen, traditionally seen as a safe haven, attracts investors seeking security in the face of growing uncertainty.

At the same time, the oil market is experiencing a phase of decline. After a marked rise in August, crude prices are once again under pressure, weighed down by persistent concerns about global demand.

Geopolitical tensions, particularly in Libya, have not been enough to sustain oil prices, which are struggling to regain their previous levels.

Gold, on the other hand, continues to play its role as a safe haven, with a progression that keeps it at high levels. However, volatility remains elevated, and much will depend on how investors react to the upcoming US data.

The financial markets are at a turning point. The stock market, on tiptoe, watches every movement of the dollar, whose resilience will be tested by the US economic data.

Caution is therefore advisable for investors. As the world eagerly awaits these key indicators, an old line of code from Satoshi Nakamoto could change the game for bitcoin.