The US Dollar has experienced a short-term pullback, with the DXY index trading within a narrow range. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
The release of mixed economic data has created some uncertainty in the market. While the JOLTS Job Openings data showed a decline, the ISM Manufacturing PMI data came in stronger than expected. The market is now pricing in a higher probability of a 50 basis point rate cut in September.
DXY Technical Outlook
The DXY index has shown a short-term pullback, with the 100.62 level acting as a key support. A break below this level could signal a further decline, with potential targets at 99.58 and lower. However, the index remains above the 200-day SMA, indicating a potential for a short-term rebound.