US Greenback (USD) had its uneven momentum in a single day following stories that President Trump had thought of dismissing Fed Chair Powell – although these claims had been later denied by the person himself. DXY was final at 98.68 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong word.
US knowledge continues to shock to the upside
“Shifting away from the noise, US financial knowledge continues to shock to the upside. The most recent Fed Beige Ebook, protecting exercise from late Could to early July, indicated a slight uptick in total financial exercise. Extra notably, the report make clear the impression of tariffs. All 12 Federal Reserve districts reported rising costs, with companies dealing with ‘modest to pronounced enter price pressures associated to tariffs’.”
“Many companies responded by passing on a part of these prices to shoppers via value will increase or surcharges. Nevertheless, some opted to soak up the prices attributable to heightened value sensitivity amongst clients, resulting in compressed revenue margins. With core items CPI already ticking larger, markets stay cautious concerning the inflationary results of tariff passthrough. Any additional proof of value pressures might immediate a extra hawkish repricing of Fed expectations, and this dangers USD overshooting to the upside within the close to time period.”
“Bullish momentum on day by day chart intact whereas RSI is close to overbought circumstances. Technically the latest upmove in DXY stalled at 50dma at 98.90 ranges. This will likely properly function interim resistance from a value motion viewpoint. Failure to interrupt above might level to exhaustion subsequent and USD might properly consolidate in 97.50 – 99 vary. Different ranges to look at: Resistance at 98.80 (50 DMA), 99.60 ranges (23.6% fibo retracement of 2025 excessive to low). Assist at 97.60/80 (21 DMA), 97.20 ranges.”
