The US Dollar has shown resilience on Monday, trading near its opening level despite a challenging week. The market’s focus is now on the release of Durable Goods Orders data, which could provide insights into the US manufacturing sector and potentially influence the Federal Reserve’s monetary policy outlook.
Economic Data and Market Sentiment
The recent release of mixed economic data, including higher-than-expected jobless claims and a decline in manufacturing activity, has created some uncertainty in the market. However, the overall economic outlook remains relatively positive, with the US economy showing signs of resilience.
The CME Fedwatch Tool continues to indicate a high probability of a 25 basis point rate cut in September, with expectations for further easing in the coming months.
Technical Outlook
The DXY index has shown some signs of stabilization after a significant decline. However, the index remains below key support levels, indicating potential for further downside. A break below 100.62 could lead to a more pronounced decline, with potential support at 99.58.