The US Dollar (USD) continued to hover near recent highs amid uncertainty over Trump policy, a possible return to US exceptionalism and less dovish comments from the Fed. The DXY was last at 106.55 levels, they note OCBC FX analysts Frances Cheung and Christopher Wong.
DXY could enter consolidation
“Overnight, Fed Chair Powell said that the Fed does not need to ‘be in a hurry to lower rates’ and that the current strength of the economy allows it to make decisions carefully. On the labor market, he said that ‘ now, by many indicators, it is back to more normal levels that are consistent with the employment mandate.’
“On the inflation outlook, he talked about short-term fluctuations in the recent range and getting down to 2% over time, albeit on a ‘sometimes bumpy road.’ Markets have already reduced the likelihood of a 25bp cut in December to 59% (versus 71% a week ago) Expectations will continue to adjust as US data arrives. This puts the focus on tonight’s data: empire manufacturing, retail sales, IP ahead of next Friday’s preliminary PMIs, sentiment data from the University of Michigan.”
“A firmer result will add to the narrative of American exceptionalism, keeping USD and USD rates elevated for longer, until data proves otherwise. Daily momentum is bullish as RSI shows tentative signs of slowing near conditions overbought. In the short term, DXY could enter resistance at 107, 107.40 (2023 high). from the maximum of 2023 to the minimum of 2024).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
