US Greenback (USD) jumped in a single day in response to hotter-than-expected PPI whereas Treasury Secretary Bessent made clarification on his earlier feedback almost about charge cuts. DXY was final at 97.88 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong be aware.
Markets stay extremely delicate to knowledge surprises
“In one other interview with Fox TV in a single day, he stated that he “didn’t inform the Fed what to do” and that ‘to get to a impartial charge, that will take roughly 150bp lower’. Elsewhere, a lot hotter PPI caught markets unexpectedly and charge lower wager was pared barely.”
“On Fedspeaks, Musalem stated it’s too early for him to determine on whether or not to decrease charges at Sep FOMC. Barkin stated he sensed enchancment on client spending in July. Nonetheless, markets nonetheless worth in 92% likelihood of Sep lower. Later immediately brings IP, retail gross sales, empire manufacturing, Uni of Michigan sentiment, inflation expectations knowledge.”
“FX markets stay extremely delicate to knowledge surprises. Hotter print might even see USD retrace its earlier declines. Every day momentum is delicate bearish whereas RSI was flat. 2-way trades however favour promoting rallies. Resistance at 98.40 ranges (21 DMA), 99.30 (100 DMA). Assist at 97.60, 97.20 ranges.”
