DXY: FOMC and data – OCBC

FXStreet Insights Team FXStreet

US Dollar (USD) strength moderated overnight, following the pullback in UST yields. DXY was last at 98.82 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

2-way trades in the interim

"Focus shifts to FOMC tonight (2am Thursday SGT) – widely expected to maintain hold. Powell’s comments on inflation, labour market outlook will be scrutinized for timing on next cut. Markets still implied around 2 cuts this year."

"On the data front, there are plenty of tier-1 data to watch out for, including conference ADP employment, 2Q GDP (Wednesday); FOMC, core PCE (Thursday); NFP, ISM manufacturing (Friday). Globally, there is BoJ, BoC policy decision and 1 Aug tariff deadline. Additionally, there may also be month-end flows distorting price action."

"Daily momentum is mild bullish but rise in RSI slowed. 2-way trades in the interim. Resistance at 99.60 (23.6% fibo retracement of 2025 high to low), 100 levels. Support at 98.30 (50 DMA), 97.80 (21 DMA), and 96.40 levels (2025 low)."

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FXStreet Insights Team

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