US Greenback (USD) was a contact softer this morning on feedback from Fed’s Waller. DXY was final at 98.37 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong observe.
Nonetheless affordable to plan on 2 charge cuts in 2025
“He believes it is sensible for the Fed to chop 25bp on the upcoming FOMC. He reiterated that coverage ought to look by means of tariff results and give attention to underlying inflation, which appears to be near FOMC’s 2% aim. He additionally described the labour market as tender, and the chance of a weaker job market is ‘better and ample’ to chop rates of interest.”
“Individually, Fed’s Daly stated that it’s nonetheless affordable for policymakers to plan on 2 charge cuts this 12 months, placing an emphasis on central financial institution mustn’t wait too lengthy earlier than transferring. DXY made a second try in a single day to check increased however once more 98.90/99 ranges capped the upside.Bullish momentum on each day chart intact whereas RSI has eased decrease from close to overbought circumstances.”
“Worth motion means that DXY’s corrective bull run could also be dealing with some exhaustion as markets search for the following piece of catalyst. Help at 97.70 (21 DMA), 97 ranges. Resistance at 98.80 (50 DMA), 99.60 ranges (23.6% fibo retracement of 2025 excessive to low). Day forward brings housing begins, constructing permits, College of Michigan’s inflation expectations. Softer-than-expected print could hold USD bulls on a leash.”
