In a single day, US Greenback (USD) bounced after prelim PMIs stunned to the upside. However good points had been retraced within the morning, alongside the pullback in UST yields. DXY was final seen at 99.40, OCBC’s FX analysts Frances Cheung and Christopher Wong be aware.
Tempo of decline might reasonable
“Republicans in Home of Representatives received passage of a serious invoice dubbed the ‘One, Massive, Lovely Invoice’ (by 215 votes to 214 votes). The laws now heads to the Senate, and the Republicans have set a 4 July deadline for each chambers to cross the invoice and get it for Presidential sign-off.”
“CBO estimates the invoice will add USD3.8trn to the US’s USD36.2trn debt over the subsequent decade and deficit might stretch to round 7% of GDP within the coming years. A bunch of things from coverage unpredictability regarding Trump tariffs to considerations over fiscal well being ought to proceed to undermine USD sentiments.”
“Bullish momentum on each day chart pale however decline in RSI moderated. Draw back stress, however tempo of decline might reasonable except there’s a contemporary set off. Help at 99.10 ranges. Resistance at 100 (21 DMA), 100.80 (23.6% fibo retracement of 2025 peak to trough) and 101.35 (50 DMA).”
