USD’s tempo of decline considerably moderated in a single day, in response to better-than-expected US information – ISM manufacturing, costs paid, JOLTS job openings. DXY was final at 96.90 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong word.
Delicate bearish momentum on day by day chart intact
“On the ECB discussion board in Sintra yesterday, Fed Chair Powell stated that Fed will take a prudent strategy to ‘wait and study extra’ concerning the influence of tariffs on inflation earlier than decreasing charges so long as the US economic system is in stable form. He additional stated that Fed would doubtless have continued to steadily decrease charges this 12 months if not for issues that tariffs may derail inflation combat. When requested a couple of July reduce, Powell stated he ‘wouldn’t take any assembly off the desk or put it straight on the desk’.”
“So, whereas Powell did go away the door open to cuts, he maintains optionality in not committing to any time-frame – largely the identical stance he had communicated earlier than. On the One Huge Lovely Invoice Act (OBBBA), Senate voted 51-50 to cross the invoice. Congressional Finances Workplace (CBO) has revised its estimate for the amended funds invoice, projecting it would add $3.3 trillion to the nationwide debt over the following decade, up from the earlier $2.8 trillion estimate for the Home model.”
“This bigger debt projection raises issues concerning the medium-term trajectory of US debt and deficits, reinforcing the narrative to ‘promote USD.’ However close to time period, we warning that the decline within the USD might even see a slower pace and even pause within the interim. Delicate bearish momentum on day by day chart intact however RSI exhibits tentative indicators of turning round from close to oversold circumstances. Help at 96.40, 96.10 ranges. Resistance at 97.50/60 ranges, 98.20 (21 DMA).”
