Dollar Index Stalls Ahead of Crucial US Jobs Data
The US Dollar Index (DXY) has been consolidating against its major currency peers ahead of the release of July's Nonfarm Payrolls (NFP) data, which is expected to significantly influence Federal Reserve interest rate expectations.
According to strategists at DBS, a sub-80k NFP reading could weigh on the USD, as it would douse expectations for another Fed rate hike this year. The FOMC has been leaning hawkish, with three members voting in favor of a July rate hike.
The US Dollar Index Spot trades flat at around 99.92, maintaining a bearish near-term bias as it holds below the 20-day exponential moving average (EMA) at 100.46. The Relative Strength Index (RSI) remains below the neutral 50 line, indicating downside pressure still dominates.
Immediate structural support is located near the lower band of the descending channel at 99.49-99.48, where prior lows and the channel floor converge to form a key demand zone. A break below this zone would expose the asset to 99.00.