According to Deep Tide TechFlow news on December 3, UBS released a research report noting that due to Trump's trade threats against BRICS countries, the dollar index broke through 106, but the current valuation appears to be overstated. While the outlook for the dollar still seems bright, UBS analysts recommend that investors take advantage of the dollar's strength to reduce their dollar exposure in the short term.
Market attention is shifting to this week's key economic events, including Federal Reserve Chairman Powell's speech on Wednesday and Friday's non-farm payroll data. According to CME Group data, the market expects a 75% probability that the Federal Reserve will cut interest rates by 25 basis points in December. NatAlliance Securities' head of international fixed income, Brenner, stated that these data will determine whether the Federal Reserve will cut rates this month.
Regarding the euro, influenced by the French government's facing a no-confidence vote, the euro fell nearly 0.8% against the dollar on Monday, marking the largest single-day drop in nearly a month. The implied volatility of the euro for three months rose to 8.172%, reaching a two-year high. The yield spread between French and German bonds has risen to a new 12-year high, reflecting increasing market concerns over political risks in the eurozone.