The US Dollar’s Volatile Ride: S&P and ISM Services Data Impact
- The US Dollar reacts to disappointing S&P and ISM Services data
- Federal Reserve’s Musalem delivers hawkish comments
- Fed Chairman Powell’s upcoming speech to add to USD volatility
The US Dollar (USD) is seeing a downward trend following the release of underwhelming data on the US Services sector from S&P Global and the Institute for Supply Management. Additionally, a no-confidence vote in France is unfolding, potentially leading to a change in the country’s leadership. Meanwhile, traders are bracing for the upcoming US Jobs Report on Friday. Here’s a breakdown of the latest economic developments:
Daily Market Movers: Contradictions in ISM and S&P Data
- ADP Job Change for November falls slightly below estimates at 146,000
- S&P Global’s final November PMI numbers miss expectations
- ISM’s November survey for the Services sector disappoints with a PMI of 52.1
- Key speeches from Federal Reserve members scheduled throughout the day
- Equities remain positive in both European and US markets
- CME FedWatch Tool predicts a 73.8% chance of a 25 bps rate cut in December
- US 10-year benchmark rate sees a slight uptick to 4.23%
US Dollar Index Technical Analysis: Charting the Path
The US Dollar Index (DXY) is showing slight gains ahead of the Nonfarm Payrolls report on Friday. Key resistance and support levels to watch:
- Resistance levels at 106.52, 107.00, and 107.35
- Support levels at 105.53 and potentially 104.00
US Dollar Index: Daily Chart
(This story was corrected on December 04 at 13:58 GMT to reflect updated information)
Central Banks FAQs: Understanding Their Role
Central banks play a crucial role in maintaining price stability and managing inflation. Here are some key points to understand:
- Central banks adjust policy rates to control inflation
- Members of central banks have varying views on monetary policy
- Chairman or president leads policy meetings and communicates decisions
- Central banks aim to avoid drastic market reactions with their policy changes