The US dollar is displaying signs of weakness during early Tuesday trading. The disappointment of last Friday’s jobs report served as a wakeup call for many, pouring cold water over some, perhaps overly optimistic, views that the American recovery would outpace that of other advanced economies, particularly Europe. This forced the hand of the Federal Reserve to bring forward the end of its current accommodative stance. However, it seems that since the publication of Friday’s labour figures the markets are once again pricing in a scenario of protracted dovishness from the Fed, which is weighing down on the dollar and creates scope for further greenback softness.
