The Dollar Index (DXY) is currently facing resistance around 102.20, according to DBS’ Senior FX Strategist Philip Wee. After bouncing back from its support level at 101.50 to 101.70 last week, all eyes are now on Friday’s US jobs report.
Key Points to Watch Out For
Analysts predict that the US nonfarm payrolls will rise to 165k in August from 114k in July, but they are still below the desired 200k level. The unemployment rate is also expected to decline slightly to 4.2% from 4.3%, but it will likely remain above 4%. Following the release of the jobs data, New York Fed President John Williams and Fed Governor Christopher Waller are expected to support the Fed’s anticipated rate cut at the upcoming FOMC meeting on September 18.
Implications for Investors
Investors should pay close attention to the upcoming US jobs report and the Fed’s response, as it could impact the Dollar Index and other financial markets. A stronger-than-expected jobs report could lead to a bullish trend for the dollar, while a weaker report may prompt the Fed to implement further rate cuts. Traders should consider these factors when making investment decisions in the coming weeks.