US Dollar Weakens Against Major Peers Amid Key US Data Focus
The US Dollar (USD) is trading relatively flat on Thursday, showing signs of weakness against most major currencies after failing to extend gains from Wednesday. Traders are closely monitoring key US economic data, which could lead to volatile market moves. The uncertainty surrounding the size of a potential interest rate cut by the Federal Reserve in September is adding to market speculation.
Today’s US economic calendar includes important releases such as the weekly Jobless Claims and the second reading of the US Gross Domestic Product (GDP) for the second quarter. The Personal Consumption Expenditure (PCE) data will also be closely watched. All these factors contribute to the market’s uncertainty and may impact the future direction of the US Dollar.
Daily Digest Market Movers: Hold on Tight
- Recent inflation data from Germany and Spain indicated a disinflation trend, causing the Euro (EUR) to weaken against the US Dollar (USD).
- Upcoming data releases include the weekly Jobless Claims, US GDP second estimate, Wholesale Inventories, Goods Trade Balance, and Pending Home Sales.
- Equity markets in Asia, Europe, and the US are trading flat to minor losses following mixed earnings reports.
- The CME Fedwatch Tool suggests a 65.5% chance of a 25 basis points interest rate cut in September.
- The US 10-year benchmark rate is stable around 3.84%.
US Dollar Index Technical Analysis: Volatility Ahead
The US Dollar Index (DXY) is facing a volatile period ahead as market uncertainty persists. The index must reclaim key levels to signal a recovery, while facing strong resistance at higher levels. Support levels are also crucial in determining the future direction of the US Dollar.
Overall, market sentiment and economic data releases will play a significant role in shaping the US Dollar’s performance in the coming days. Investors should closely monitor key indicators to make informed decisions regarding their finances and investments.