The dollar could remain under pressure, as it hovers near multi-week lows, and could extend last week’s losses, as markets continue to expect additional interest rate cuts.
The latter could continue to weigh on the greenback and US treasury yields.
Attention now turns to a dense macro calendar that could define market direction in the weeks ahead. Tuesday’s release of delayed nonfarm payrolls data for October and November will be closely scrutinised for confirmation of labour market cooling. A weak print would further strengthen expectations for multiple rate cuts in 2026, keeping pressure on both the dollar and US yields. Retail sales data, expected to remain subdued around 0.2%, will also be important in assessing the resilience of the US consumer.
Later in the week, November inflation figures will provide another critical input. Stable or decelerating inflation could reinforce the dovish narrative and validate expectations for an extended easing cycle, while a clear upside surprise would likely challenge current market pricing for interest rates and support yields and the dollar.
