• The US Dollar extends losses to levels not seen since mid-January.
• US Federal Reserve Chairman Jerome Powell triggered the sell-off by confirming that rate cuts will come this year. 
• The US Dollar Index trades below 103.00, and might snap 102.00  if NFP data disappoints. 

The US Dollar (USD) is entering on Friday what could become a sixth consecutive day of losses after Thursday ended with the longest red candle of the week. In the showdown between the US Federal Reserve (Fed) and the European Central Bank (ECB), the Fed sounded more dovish as Chairman Jerome Powell committed to rate cuts this year, while ECB’s President Christine Lagarde did not even mention cuts in her statement after the ECB rate decision. Meanwhile, data out of the US that signals losing momentum gives markets the sense of urgency that the Fed will need to move quickly to salvage a soft landing. 

On the economic calendar front, only one real data point will be important this Friday. The US EmploymentReport will release its monthly change in Nonfarm Payrolls, with expectations at 200,000, coming from 353,000 a month earlier. The lowest estimate among economists is around 110,000 and the highest at 286,000, which means that any print below the lowest estimate will likely see another leg of US Dollar weakness. In contrast, an upbeat number above 286,000 will probably see the DXY pare back Thursday’s losses.