US Greenback (USD) rebounded from decrease grounds, owing to upside shock from US shopper confidence and progress with EU-US commerce talks. DXY was final at 99.56 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong observe.
Day by day momentum just isn’t exhibiting a transparent bias
“Elsewhere chatters of month-end USD purchase flows might also have contributed to the USD rebound. Day by day momentum just isn’t exhibiting a transparent bias whereas RSI rose. Consolidation, with dangers to the upside just isn’t dominated out within the close to time period. Resistance at 100.1 (21 DMA), 100.80 (23.6% fibo retracement of 2025 peak to trough). Subsequent help at 97.90 (2025 low), 97.40 ranges.”
“Immediately’s deal with Richmond fed manufacturing, FOMC minutes (2am tomorrow). Coverage unpredictability surrounding Trump’s tariffs and ballooning debt and deficits are among the US-centric dangers that will proceed to undermine confidence within the USD.”
“That stated, we stay cautious on how month-end flows could distort worth motion in addition to core PCE knowledge (Friday). The danger of a firmer than anticipated print could result in a discount in USD quick place (i.e. USD power).”
