US Dollar declines after weak economic data and neutral Fed outlook
The post US Dollar declines after weak economic data and neutral Fed outlook appeared on BitcoinEthereumNews.com.
US job openings for July arrived at 7.67 million, weaker than expected. Fed Beige Book notes modest price increases and slight economic growth. Markets remain overconfident on a super-dovish Fed. The US Dollar Index (DXY), a measure of the USD against a basket of six currencies, snapped its recovery streak on Wednesday after a disappointing report on US job openings and a mixed outlook from the Federal Reserve’s (Fed) Beige Book. Overall, the US economy remains in a state of expansion, surpassing its expected growth rate, but the soft tone of the labor market gives the market reason to bet on a dovish Fed. Daily digest market movers: US Dollar declines on weak JOLTS data and mixed Fed outlook US job openings decreased to 7.67 million at the end of July, missing market expectations. Fed’s Beige Book indicated modest price increases and uneven economic growth. Economic activity improved or remained stable in most Fed districts with some anticipating slight declines. Price pressures are expected to moderate, but economic activity remains mixed. Market expectations for Fed easing remain steady at 100 basis points by year-end and 200 basis points over the next 12 months. The probability of a 50 bps cut in September stands around 30-35%. Friday’s Nonfarm Payrolls will dictate the pace of Fed cuts and USD dynamics. DXY technical outlook: DXY remains bearish, encountering resistance at 102.00. The index recently rallied but encountered resistance at the 20-day Simple Moving Average (SMA), leading to a selling frenzy. The Relative Strength Index (RSI) is in negative territory, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) remains on negative terrain, reinforcing the downtrend. Supports are located at 101.30, 101.15 and 101.00, while resistances lie at 101.80, 102.00 and 102.30. US Dollar FAQs The US Dollar (USD) is the official currency of…
Filed under: News - @ September 4, 2024 7:18 pm