US Job Openings Disappoint in July, Fed Beige Book Shows Modest Economic Growth
The latest data on US job openings for July came in weaker than expected at 7.67 million, leading to a decline in the US Dollar Index (DXY). The Federal Reserve’s Beige Book also highlighted modest price increases and slight economic growth, contributing to market concerns about a dovish Fed.
Key Market Moves: USD Declines on Weak JOLTS Data and Fed Outlook
- US job openings fell to 7.67 million in July, missing market expectations.
- Fed’s Beige Book reported modest price increases and mixed economic growth.
- Most Fed districts saw improved or stable economic activity, with some anticipating slight declines.
- Market expectations for Fed easing remain steady, with a 30-35% chance of a 50 bps cut in September.
- Nonfarm Payrolls on Friday will influence Fed cuts and USD dynamics.
DXY Technical Analysis: Bearish Momentum Persists
The DXY remains bearish, facing resistance at 102.00 after a failed recovery attempt. The RSI and MACD indicators signal bearish momentum, with support levels at 101.30, 101.15, and 101.00, and resistance at 101.80, 102.00, and 102.30.
Understanding the US Dollar
The US Dollar is the world’s most traded currency, influenced by the Federal Reserve’s monetary policy. Fed actions, such as interest rate adjustments and QE, impact the USD value. QE weakens the Dollar, while QT strengthens it.