US Dollar’s recovery attempt from Monday’s lows at 0.8665 is meeting strong resistance at the upper range of 0.8700. This leaves the pair wavering right about 0.8700, with the bearish trend from early November highs intact. Risk-averse market sentiment on Tuesday’s European session has offset the impact of the weak Swiss CPI reading seen on Monday. This sourer mood is favouring the safe-haven Swiss Franc, and keeping US Dollar bulls in check.
In the US, Factory orders data sewn on Monday confirmed that US economic growth is cooling in the fourth quarter of the year. This and the softer inflation figures are feeding hopes that the Fed is done with hikes, which is weighing on the USD. Today, the US ISM Services PMI and the JOLTS job openings will provide some more insight into the US economic outlook although the highlight of the week will be Friday’s Nonfarm Payrolls report. From a wider perspective, the pair remains looking vulnerable printing lower highs and lower lows. Resistance at 0.8770 is the nearest peak that should be breached to confirm a trend change and advance towards 0.8820 and 0.8880 levels.
