Fundamental Perspective:
The US ISM Manufacturing PMI rose to 47.2 in Aug but fell short of the 47.5 forecast. This marks the 21st monthly contraction in US factory activity over the past 22 months. This persistent weakness highlights the strain of high Fed interest rates on the manufacturing sector.
The focus remains on the US jobs data, where further softening of the labor market could bolster expectations for a 50 bps rate cut and weigh on the dollar.
Technical Perspective:
The dollar pared recent losses but remained within the descending channel, with the price approaching the 102.50 resistance. If DXY regains its bearish momentum below 102.50, a further decline to retest the 100.60 swing low might occur. MACD is also holding below the zero threshold, supporting the potential for further downside. Conversely, if DXY breaks above the 102.50 resistance and channel's upper bound, the index could extend its gains to the 103.80 resistance.
The US ISM Manufacturing PMI rose to 47.2 in Aug but fell short of the 47.5 forecast. This marks the 21st monthly contraction in US factory activity over the past 22 months. This persistent weakness highlights the strain of high Fed interest rates on the manufacturing sector.
The focus remains on the US jobs data, where further softening of the labor market could bolster expectations for a 50 bps rate cut and weigh on the dollar.
Technical Perspective:
The dollar pared recent losses but remained within the descending channel, with the price approaching the 102.50 resistance. If DXY regains its bearish momentum below 102.50, a further decline to retest the 100.60 swing low might occur. MACD is also holding below the zero threshold, supporting the potential for further downside. Conversely, if DXY breaks above the 102.50 resistance and channel's upper bound, the index could extend its gains to the 103.80 resistance.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.