The US Dollar rebounded after the Federal Reserve\u2019s (Fed) decision, with market participants focusing on Friday\u2019s Nonfarm Payrolls data. Despite signs of disinflation, the strong US economic landscape led Fed Chair Jerome Powell to maintain a data-dependent stance. While chances of a rate cut in September increased, Powell\u2019s demand for more data slightly reduced the odds of a cut. The broader economy remains robust, supported by economic activity indicators.
In the daily market update, the US manufacturing sector continued to contract in July, as indicated by the ISM Manufacturing PMI dropping to 46.8 from June\u2019s 48.5. The Employment Index also declined sharply. However, the Prices Paid Index, measuring inflation, saw a slight increase. Additionally, US citizens applying for unemployment benefits exceeded market consensus. Nonfarm Payrolls data, to be released on Friday, will impact the market\u2019s position relative to the Fed\u2019s decision.
Regarding the DXY index, it rebounded above the 20-day SMA after the Fed decision. Buyers are expected to defend this level, with support at 104.15 and 104.00, and resistance at 104.50 and 105.00. Indicators suggest growing momentum for buyers, although the overall outlook remains negative.
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The US Dollar rebounded after the Federal Reserve\u2019s (Fed) decision, with market participants focusing on Friday\u2019s Nonfarm Payrolls data. Despite signs of disinflation, the strong US economic landscape led Fed Chair Jerome Powell to maintain a data-dependent stance. While chances of a rate cut in September increased, Powell\u2019s demand for more data slightly reduced the …<\/p>\n","protected":false},"author":13,"featured_media":95351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6885,11176,6868,8676,8324],"class_list":["post-104479","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-fed","tag-fed-decision","tag-fomc","tag-ism-manufacturing-pmi","tag-us-dollar-index"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/104479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=104479"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/104479\/revisions"}],"predecessor-version":[{"id":104488,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/104479\/revisions\/104488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/95351"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=104479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=104479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=104479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}