USD weakens on tariff concerns and soft NFP data amid rising debt fears

The US dollar faces mounting pressure from multiple fronts, including escalating tariff uncertainties, disappointing labor market details from the latest Non-Farm Payrolls report, and growing concerns over rising US debt levels. These factors have combined to fuel economic uncertainty, prompting a shift toward safe-haven assets and away from the greenback. The weak employment data suggests potential cracks in the US labor market's resilience, while trade tensions threaten to disrupt global supply chains and increase inflationary pressures. Rising US debt levels add another layer of concern for dollar bulls, potentially limiting the Federal Reserve's policy flexibility. Technical analysis shows the Dollar Index breaking below key support levels, with momentum indicators suggesting further weakness ahead. Safe-haven currencies like JPY and CHF have benefited from the risk-off sentiment, while gold prices have surged as traders seek alternatives to the dollar.