US Dollar Steadies Following Jobless Jobless Claims as Fed Hints at Easing

The US Dollar traded flat on Thursday, hovering around 106.50 on the DXY index. This comes after New York Fed President John Williams suggested that inflation is cooling, potentially paving the way for a future interest rate cut.

Key Market Movers:

Jobless Claims: Weekly jobless claims came in lower than expected, but a surge in continuing claims raised concerns.

Philadelphia Fed Manufacturing Index: The index contracted significantly in November, further supporting the case for a rate cut.

Fed Officials’ Comments: Several Fed officials, including Williams and Richmond Fed President Tom Barkin, expressed a more dovish outlook on inflation and interest rates.

Technical Analysis:

The US Dollar Index remains supported by geopolitical tensions, particularly the ongoing conflict between Russia and Ukraine. However, any de-escalation could lead to a decline in the US dollar.

While the market is currently pricing in a rate cut in December, it’s important to monitor Fed officials’ comments and economic data for further clues on the future direction of monetary policy.

• Resistance Levels: 107.00, 107.35
• Support Levels: 105.93, 105.53, 104.00