The post US Dollar closed the week soft, focus is now on labor market data appeared on BitcoinEthereumNews.com.

US Dollar saw a slight dip at the end of the week, clearing daily gains. US Dollar finds support amid high US Treasury yields. May’s PCE data showed an unexpected deceleration in US inflation. The end of the week saw the US Dollar, as benchmarked by the DXY Index, settle near 105.80, after hitting a high of 106.13 earlier in the session. This follows the release of Personal Consumption Expenditures (PCE) data, but the losses are limited by the high US Treasury yields. The American economy remains resilient with slight inflationary signals, which is just enough to keep the Federal Reserve (Fed) from completely embracing the easing cycle. Daily digest market movers: US Dollar dips on weak PCE data On Friday, May’s Personal Consumption Expenditures (PCE) showed headline inflation soften to 2.6% YoY, down from the previous month’s 2.7%. Core PCE (which excludes volatile food and energy prices) has also experienced a decline to 2.6% from the previous 2.8% in April. US Treasury yields provide resilience to the Dollar, with the 2, 5 and 10-year rates at 4.71%, 4.32%, and 4.33%, respectively. Probability of a Fed rate cut in September marginally increased to 66%, up from the pre-release expectation of 64% as per CME Fedwatch Tool. Focus will now shift to labor market data from June. DXY technical outlook: Positive momentum persists, index eyeing higher grounds Despite the recent data fluctuations, the technical outlook remains positive, with indicators in green but losing some steam. The Relative Strength Index (RSI) continues to be above 50 but appears to point downward, indicating a slight pause in the bullish momentum. The green bars are still developing in the Moving Average Convergence Divergence (MACD), further facilitating the positive view but at a slower pace. The DXY Index holds above the 20, 100 and 200-day…

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Filed under: News - @ June 29, 2024 1:24 am