On Monday, February 5, the US Dollar (USD) maintains its strength against other currencies, building on Friday’s significant surge. Escalating geopolitical tensions and Federal Reserve (Fed) Chairman Jerome Powell’s hawkish comments contribute to a negative market sentiment, bolstering the USD. Investors now turn their attention to the upcoming ISM Services PMI report.

The USD Index (DXY) recorded an impressive nearly 1% gain on Friday, fueled by the Bureau of Labor Statistics’ monthly report revealing a robust increase in Nonfarm Payrolls, exceeding market expectations by a wide margin with a rise of 353,000 jobs in January. In a televised interview on CBS News’s 60 Minutes early Sunday, Powell emphasized that the March policy meeting might be too early to consider rate cuts confidently. Powell reiterated the possibility of an earlier move if there were signs of labor market weakness or convincing declines in inflation. The DXY surged to its highest level since early December, surpassing 104.00 in the Asian trading session before experiencing a slight retreat during the European morning.