DXY remains under pressure
From a technical perspective, DXY extended its decline as the price approached the 100.80 support. A break below this level could prompt a further decline, with 99.80 as the next potential support. Conversely, a rebound above 100.80 could prompt a pullback to retest the 102.50 resistance. MACD remains below the zero threshold, indicating potential for further downside.
From a fundamental perspective, expectations for the Fed's easing cycle following softer US economic data drove the dollar's decline. Markets are pricing in around a 90 bps rate cut by the end of this year as the labor market cools. Elsewhere, US politics remain in the spotlight with the upcoming general election in November.
From a fundamental perspective, expectations for the Fed's easing cycle following softer US economic data drove the dollar's decline. Markets are pricing in around a 90 bps rate cut by the end of this year as the labor market cools. Elsewhere, US politics remain in the spotlight with the upcoming general election in November.
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