Will the Federal Reserve finally decide to pause on further rate hikes, keeping interest rates at 5.25%, or will the Feds hike rates one final time to take rates to 5.50%?
There has been much speculation about the likely outcome of the US FOMC regarding its interest rate decision.
Especially with the most recent CPI data being released at 4.0% (Expected 4.1% Previous 4.9%) a significant slowdown in inflation growth is being witnessed and it is likely to play towards encouraging the Feds to pause on further hikes.
Although the June unemployment rate rose slightly to 3.7%, the NFP was still significantly stronger than expected at 339k.
There are several technical analysis factors applying the downward pressures on the DXY, in particular, the downward trendline, 50MA and the 103.40 resistance level.
If the Feds does pause on rates, I'd be looking for the DXY to trade down to the support area of 102.80 and 103, which coincides with the 50% Fibonacci retracement level.
There has been much speculation about the likely outcome of the US FOMC regarding its interest rate decision.
Especially with the most recent CPI data being released at 4.0% (Expected 4.1% Previous 4.9%) a significant slowdown in inflation growth is being witnessed and it is likely to play towards encouraging the Feds to pause on further hikes.
Although the June unemployment rate rose slightly to 3.7%, the NFP was still significantly stronger than expected at 339k.
There are several technical analysis factors applying the downward pressures on the DXY, in particular, the downward trendline, 50MA and the 103.40 resistance level.
If the Feds does pause on rates, I'd be looking for the DXY to trade down to the support area of 102.80 and 103, which coincides with the 50% Fibonacci retracement level.
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