This week has been a rollercoaster for the US Dollar, which has endured a relentless four-day losing streak. Despite some encouraging data from the Nonfarm Payrolls report, the Greenback remains trapped in a corner, unable to break free from the bears' grip. The Dollar Index struggled to climb back above the critical 105.25 mark, which coincides with the 55-day SMA. Despite the DXY's decline, the proximity to the lower bound of the ascending medium-term channel may provide solid support in the near term, potentially prompting a short-term rebound on the technical buy signal:

The latest NFP report painted a somewhat confusing picture. While the headline number showed a gain of 206,000 jobs in June, this was overshadowed by a downward revision of the previous month’s figure from 272,000 to 218,000. To add to the complexity, the Unemployment Rate edged up from 4.0% to 4.1%. These mixed signals have sparked debate among market participants about the Federal Reserve's next moves.

With the Unemployment Rate ticking up and Average Hourly Earnings growth slowing from 0.4% to 0.3%, the case for the Federal Reserve to consider a rate cut is gaining traction. Interest rate futures indicate a 66% probability of a 25-basis-point cut in September, while the chances of a rate pause stand at 27.4%.

The looming second round of the French elections this weekend adds another layer of uncertainty. Current President Emmanuel Macron is poised to fend off the far-right challenge from Marine Le Pen, according to the latest polls. A victory for Macron could further pressure the USD, pushing the DXY towards 104.75 or even lower as markets react to the reduced political risk in Europe.

The global equities landscape has been equally tumultuous. Asian markets closed the week in negative territory, with both Chinese and Japanese indices recording losses. In contrast, European equities found some solace in the UK's market dynamics, with the FTSE 100 experiencing a brief 1% rally before retreating to flat territory ahead of the US session.

The US 10-year Treasury yield has been another critical focus, dipping to a fresh weekly low of 4.31%. This decline reflects the market's growing anticipation of a potential shift in Fed policy, as well as the broader risk-off sentiment that's permeated the financial landscape this week.