Bank of America: The dollar's safe-haven attributes are fully activated, with the non-farm payroll report taking a backseat

Odaily Planet Daily reports that the US dollar is experiencing its best week in over a year. Amid conflicts in the Middle East and soaring oil prices, the dollar has strengthened as the ultimate safe haven. As of press time, the onshore US dollar index has risen by 1.5% this week, marking the largest gain since the end of 2024. Hostile actions are disrupting oil production and shipping, intensifying inflation concerns at the Federal Reserve and other central banks. This has led traders to reduce bets on Fed rate cuts, further boosting the dollar. Complicating the economic outlook, a report on Friday showed that US employers unexpectedly cut jobs last month. However, since the focus was mainly on energy prices, this data only briefly weighed on the dollar, which quickly regained its upward momentum. The benchmark 10-year Treasury yield also climbed for the fifth consecutive day. US bank forex strategist Alex Cohen said, “In this environment, the market is looking through weak data because ongoing uncertainty and rising oil prices at new highs are the dominant driving forces.” (Jin10)