Dollar's Retreat Amid Key Economic Indicators and Political Developments

The U.S. dollar declined from a four-week high as traders await key U.S. economic indicators. The dollar's retreat comes amid U.S. action in Venezuela and expectations of two rate cuts this year. Investors are also monitoring Trump's appointment for the next Fed chair with an interest in lower rates.

The U.S. dollar pulled back from a near four-week high against major global currencies on Monday. This movement follows traders focusing on forthcoming U.S. economic data to glean insights into monetary policy direction. Despite significant efforts in Venezuela, including the capture of President Nicolas Maduro, markets showed minimal reaction.

Crucial to the dollar's dynamic this week is the U.S. monthly employment report due Friday, impacting forecasts for monetary policy. Influential strategist Marc Chandler sees potential for a dollar rebound in anticipation. Presently, the dollar edged down 0.16% against the Swiss franc, and the euro managed a minor recovery from earlier losses against the dollar.

Even amidst these currency shifts, geopolitical developments from the U.S. raid in Venezuela and rate cut expectations loom large. With Jerome Powell's Fed chair term concluding in May, President Trump's forthcoming choice aims at favoring lower interest rates. Consequently, the dollar remains under pressure, declining against the yen, Australian dollar, and New Zealand kiwi.

(With inputs from agencies.)