US Dollar up following strong preliminary PMIs from June
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US Dollar soars on back of robust PMI figures for June. Markets continue to exercise caution as Fed officials maintain a wary stance on easing cycles. Investors continue to leave the door open for a September cut. On Friday, the US Dollar, benchmarked by the US Dollar Index (DXY), extended its gains, stemming primarily from robust Purchasing Managers Index (PMI) figures for June released by S&P. Regarding the US economic outlook, there exist signs of some disinflation. Furthermore, Federal Reserve (Fed) officials’ cautious comments regarding embracing easing cycles serve to keep market expectations in balance. Should the mixed signals from the economy continue, these could potentially impede any further gains in the USD. Daily digest market movers: US Dollar rides high on strong PMIs US S&P Global Composite PMI for June rose slightly from 54.5 in May to a flash estimate of 54.6, indicating a healthy expansion in business activity within the private sector of the United States. Similarly, the S&P Global Manufacturing PMI rose from 51.3 to 51.7 within the same time frame, while Services PMI witnessed an increase to 55.1 from 54.8 in May. This data beat the estimates done by analysts. Probability of a rate cut as per CME Group’s FedWatch Tool continues to stand around 65% for the meeting on September 18. DXY technical analysis: Bullish momentum continues, technicals pave the way for more upside Technical indicators for Friday’s session demonstrated renewed bullish momentum backed by robust PMI figures. The Relative Strength Index (RSI) stood above 50, with the Moving Average Convergence Divergence (MACD) presenting green bars, pointing toward sustained bullish sentiment. Additionally, the DXY Index maintains its footing above the 20-day, 100-day and 200-day Simple Moving Averages (SMAs). Coupled with the rising indicators, the US Dollar seems to be poised for additional gains. …
Filed under: News - @ June 22, 2024 7:18 pm