The US Dollar has maintained a relatively stable position at the start of the week, with the DXY index showing limited movement. The market’s focus is now on the release of key economic data, including the Consumer Confidence Index and the Richmond Fed Manufacturing Index.
Economic Data and Market Sentiment
The Housing Price Index for June showed a slight decline, indicating a softening housing market. However, the overall economic outlook remains relatively positive, with equities showing strength across major markets.
The CME Fedwatch Tool continues to indicate a high probability of a 25 basis point rate cut in September, with expectations for further easing in the coming months.
DXY Technical Outlook
The DXY index has shown a short-term recovery from its recent decline. However, the index remains below key resistance levels, indicating potential for further downside. A break below 100.62 could signal a more pronounced decline, with potential support at 99.58.
