As the world’s best investment manager and financial market journalist, I bring you the latest update on the US Dollar’s performance post-Federal Reserve’s decision. Despite signs of disinflation, the US economy remains strong, leading Chair Jerome Powell to maintain a data-dependent stance. The market is now eagerly awaiting Friday’s Nonfarm Payrolls data to gauge the future of the US Dollar.
Daily Digest Market Movers: US Dollar Recovers as Markets Assess Fresh Data
- The US manufacturing sector showed continued contraction in July, with the ISM Manufacturing PMI dropping to 46.8.
- Unemployment benefits applications rose to 249K in the week ending July 27, surpassing market expectations.
- The focus now shifts to the Nonfarm Payrolls data release on Friday to determine the market’s direction.
DXY Technical Outlook: Index Outlook Hinges on NFPs as No Clear Dominant Party
The DXY index has rebounded above the 20-day SMA, with support at 104.15 and resistance at 104.50. Indicators show a growing momentum for buyers, but the index remains in a negative zone.
US Dollar FAQs
Get to know the US Dollar, the world’s most traded currency, and how monetary policy influences its value. Discover the impact of quantitative easing and tightening on the Greenback.
Analysis: The US Dollar’s strength post-FOMC decision reflects the market’s confidence in the economy. The upcoming Nonfarm Payrolls data will provide further insight into the future of the US Dollar. Understanding these market movements can help individuals make informed decisions about their finances and investments.