DXY: 2-way trades on the daily chart – OCBC
|There are still no Federal data releases due to US government shutdown. This puts emphasis on private sector data and Fedspeaks. DXY last seen at 98.43 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
USD should remain on a moderately soft path
"This week, there is a handful of Fedspeaks including Miran (Tuesday), Powell (Thursday). On Fedspeaks last week, Miran again pressed for aggressive rate cut trajectory, citing the impact of Trump administration's economic policies. Last Friday, ISM services came in softer than expected. Business activity, new orders all fell while employment component remains in contractionary territory. Last week’s ADP private payroll also suggested that labour market continued to cool."
"JOLTS report revealed there are more unemployed people than there are job vacancies. These data reinforce the bias for Fed to continue cutting rates. In addition, a senior White House official said that the Trump administration will likely start mass layoffs of federal workers if Trump decides negotiations with congressional Democrats to end a partial government shutdown are 'absolutely going nowhere"
"Fed’s easing bias, alongside weak labour market and political stand-off suggest that USD should remain on a moderately soft path. Mild bullish momentum on daily chart intact while RSI rose. 2-way trades likely. Resistance at 98.00/40 levels (50, 100 DMAs, 38.2% fibo retracement of May high to Sep low) and 99 levels (50% fibo). Support at 97.60 (21 DMA, 23.6% fibo), 97.20. There is no scheduled data release for today."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.