Dollar Corrects Slightly Ahead of NFP
The dollar index (DXY) fell around 0.3% to 99.02 on Friday (March 6) as oil prices weakened and markets awaited the release of US nonfarm payrolls (NFP). The oil correction occurred after US Treasury Secretary Scott Bessent announced "stop-gap" measures to ease energy supply pressures related to the Middle East conflict, reducing the dollar's safe-haven appeal earlier in the session.
EUR/USD moved slightly higher. The euro hovered around 1.1607–1.1619 (around +0.1%), although it remained under weekly pressure as markets assessed that surging energy costs could weigh on Europe's outlook, while US data made expectations of a Fed rate cut more cautious.
GBP/USD strengthened slightly to around 1.3364–1.3369 (around +0.1%). Sterling remains sensitive to energy inflation risks, but the small rebound reflects the dollar's weakness ahead of the NFP and a limited recovery in risk appetite amid the oil correction.
AUD/USD also strengthened to 0.7038 (around +0.43% from the previous close of 0.7008), in line with the weakening dollar and easing oil pressure. However, the Aussie remains vulnerable if the NFP reinforces the "tighter Fed for longer" narrative.
USD/JPY was relatively flat at around 157.60 (around +0.04%), indicating the yen hasn't received a strong boost despite the weakening DXY, as the market is still weighing the combination of US yields, geopolitical volatility, and the risk of Japanese intervention.
USD/CHF weakened slightly to around 0.7803 (around -0.12%), indicating the franc strengthened slightly against the dollar as safe-haven pressure eased along with the oil correction. Nevertheless, the dollar still recorded a strong weekly performance due to the Iran conflict and interest rate repricing.
Source: Newsmaker.id
