• The US Dollar heads back to flat after taking a step back earlier.
  • The Greenback gave up its earlier gains against the Chinese Yuan and the Japanese Yen this Monday. 
  • The US Dollar Index trades near 105.00 and flirts with a break below. 

US Dollar Regains Momentum Amid Anticipation of Fed Policy Shift


  • Traders Anticipate Earlier Federal Reserve Rate Cut Following US Jobs Report
  • Federal Reserve to Release Senior Loan Officer Survey This Week
  • Geopolitical Tensions Rise in Gaza; Impact on Currency Markets Noted

Key Points

  1. US Dollar Movement: Traders are increasing bets on an earlier rate cut by the Federal Reserve, influenced by the recent US Jobs Report which showed solid labor market conditions despite missing forecasts.
  2. Upcoming Federal Reserve Activities: This week, the Fed will publish the Senior Loan Officer Survey (SLOOS), and Fed officials, including John Williams and Thomas Barkin, will speak, potentially impacting USD movements.
  3. Geopolitical Developments: Tensions in Gaza are escalating. Egypt has fortified its border near Gaza, Israel has initiated a new offensive in Rafah, and ceasefire negotiations have been suspended.
  4. Currency Market Reactions: The Japanese Yen and the Chinese Yuan have depreciated against the USD. The upcoming speeches by Federal Reserve officials and US Treasury bill auctions will likely influence market sentiment further.
  5. US Dollar Index Analysis: The DXY experienced significant volatility last week, driven by Japan’s substantial intervention in the USD/JPY pair. Key technical levels to watch include resistance at 105.52 and support at 104.52.

By Admin

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