Dollar pared recent gains as Fed rate cut looms
Fundamental Perspective:
The Fed will likely keep interest rates steady and hint at a potential cut in Sep amid progress on inflation and a softer labor market.
Meanwhile, Vice President Kamala Harris has narrowed the gap with Donald Trump in key battleground states, showing more robust poll numbers than President Biden and could enhance voter turnout.
Political uncertainty surrounding the US elections and potential Fed rate cuts continue to weigh on the dollar.
Technical Perspective:
DXY pared recent gains as it approaches the 105.00 resistance, which coincides with the Fibonacci confluence levels. If DXY reverses below 105.00, a further decline towards the 103.20 support might occur. MACD is holding below the zero threshold, which could indicate further downside potential. However, it is worth noting that a break and close above 105.00 could prompt a further rise towards 106.00.
The Fed will likely keep interest rates steady and hint at a potential cut in Sep amid progress on inflation and a softer labor market.
Meanwhile, Vice President Kamala Harris has narrowed the gap with Donald Trump in key battleground states, showing more robust poll numbers than President Biden and could enhance voter turnout.
Political uncertainty surrounding the US elections and potential Fed rate cuts continue to weigh on the dollar.
Technical Perspective:
DXY pared recent gains as it approaches the 105.00 resistance, which coincides with the Fibonacci confluence levels. If DXY reverses below 105.00, a further decline towards the 103.20 support might occur. MACD is holding below the zero threshold, which could indicate further downside potential. However, it is worth noting that a break and close above 105.00 could prompt a further rise towards 106.00.
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