He United States Dollar (USD) fell for a second straight session after ISM services fell into contraction territory. New orders and employment also surprised, falling into contraction territory (below 50), OCBC analysts Frances Cheung and Christopher Wong note.
Bullish momentum moderates on the daily chart
“Echoing Federal Reserve (Fed) Chairman Jerome Powell’s recent comments in Sintra that the Fed has made ‘a fair amount of progress’ toward lower inflation, the FOMC minutes released last night emphasized ‘modest further progress’ in recent months, though inflation remained elevated.”
“This is consistent with recent comments from Fed Chair Powell and Mary Daly, who talked about this Beveridge curve. On the data side, the American exceptionalism narrative has been softening. And markets would be looking forward to Friday’s NFP report or even next Thursday’s CPI report. A softer figure should help calm USD bulls.”
“The DXY was last at 105.22. Bullish momentum on the daily chart moderated while the RSI fell. Support is seen at 105.20 (50-DMA), 104.80 (61.8% Fib retracement of the October high to 2024 low, 100-DMA), and 104.50 (200-DMA). Resistance is seen at 105.80 (76.4% Fib retracement), 106.20.”
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.
