Strong US Services Data Could Delay Fed Rate Cuts and Boost Dollar
The US services sector showed remarkable strength in September, with the S&P Global Services PMI beating expectations at 58.8, while the Composite PMI held steady at 58.4. Both figures remain well above the 50 mark, indicating expansion. This robust data suggests the Federal Reserve may be less inclined to implement aggressive rate cuts, as the service sector's resilience reduces the need for economic stimulus.
The strong PMI figures could push Treasury yields and the US dollar higher, reflecting broader economic growth. However, the impact on Bitcoin and other risk assets remains uncertain, potentially leading to heightened volatility. A robust economy generally supports long-term growth expectations, but short-term trading conditions for Bitcoin may remain unpredictable.
Bitcoin's immediate trading range is defined by key resistance at $87,570 and support levels at $84,000 and $82,000. If Bitcoin breaks above resistance, it could surge to $93,700. Conversely, breaking below support could lead to further declines. Meanwhile, spot gold faces resistance between $4,207 and $4,220, with a potential target of $4,300 if it overcomes this boundary. Support for gold sits between $4,100 and $4,124.
The dollar index is showing bullish momentum above 102.00, with key resistance between 102.20 and 102.50. Support for the dollar index is between 101.80 and 101.39. Analysts anticipate continued volatility in Bitcoin and other risk assets as traders balance economic strength against evolving monetary policy signals.