05.01.202615:41:46UTC+00Dollar Pares Some Gains

The dollar index, initially high, moderated most of its early advances, settling at a modest increase to 98.5. This adjustment came as concerns about Venezuela's situation lessened, coupled with a weaker-than-expected ISM Manufacturing PMI, which impacted overall market sentiment. Earlier, the dollar had surged to 98.8 following the US capture of Venezuelan leader Maduro and his wife over the weekend, rising geopolitical tensions, and boosting demand for safe-haven assets. On the economic data side, the ISM Manufacturing PMI pointed to the most significant factory sector contraction since 2024 as of December. Moving forward, several important US economic reports are anticipated later in the week. These include the jobs report on Friday, JOLTS and ADP employment figures, and the Michigan consumer confidence survey, which should provide additional insight into the economic landscape. Currently, the markets are factoring in two US interest rate cuts this year, although the Federal Reserve has only projected one reduction.