The US Dollar (USD) is trading softer as investors brace for a slew of economic data releases on Thursday. The Greenback already saw a decline following the JOLTS Job Openings report, which came in below expectations, prompting markets to price in more rate cuts by the Federal Reserve (Fed).
Key data to watch out for includes the ADP Employment Change, Jobless Claims, and Purchasing Managers Index (PMI) Services data. These releases will likely have a significant impact on the direction of the US Dollar in the coming days.
Daily Digest Market Movers: Steer Through the Data
- Challenger Job Cuts for August will be released at 11:30 GMT.
- ADP Employment Change for August is expected at 12:15 GMT.
- Weekly Jobless Claims data will be released at 12:30 GMT.
- Nonfarm Productivity and Unit Labor Costs for the second quarter will follow the Jobless Claims data.
- S&P Global will deliver its final reading for the Services and Composite PMI numbers for August at 13:45 GMT.
- The Institute for Supply Management (ISM) will close the day with its August reading for the Services sector at 14:00 GMT.
Equities are under pressure following the NVIDIA subpoena, with all major indices in the red. The CME Fedwatch Tool shows a 55.0% chance of a 25 basis points interest rate cut by the Fed in September.
US Dollar Index Technical Analysis: Potential Breakout Ahead
The US Dollar Index (DXY) is currently range-bound but could see a breakout depending on the upcoming data releases. Resistance levels to watch include 101.90, 103.18, and 104.00, while support levels are at 100.62 and 99.58.
Overall, the US Dollar’s performance in the coming days will be heavily influenced by economic data and market sentiment surrounding Fed rate cut expectations.
US Dollar FAQs
The US Dollar (USD) is the most traded currency in the world, influenced largely by US monetary policy set by the Federal Reserve (Fed). The Fed’s decisions on interest rates and quantitative easing play a crucial role in shaping the value of the US Dollar.
Understanding these factors can help investors and traders anticipate movements in the currency markets and make informed decisions about their portfolios.