Forex analytics and overview

U.S. Dollar Index Recovers After Upbeat ADP Data

2022.10.06 04:57

[ad_1]

The U.S. dollar, measured by the , recovered ground on Wednesday following the release of a better-than-expected ADP report.

At the time of writing, the DXY index trades at the 111.50 area, recording a 1.2% gain on the day and staging a bounce from a two-week low struck on Tuesday.

ADP released the , which showed the private sector created 208,000 jobs. The reading surpassed market expectations of 200,000, while the August figure was upwardly revised to 185,000 (previous 132,000).

Attention now turns to the report on Friday as investors assess the job market’s resilience in the face of tighter monetary conditions.

While the market mood was driven by the expectation of a potential Fed policy pivot on Tuesday, investors seemed to have second thoughts as Fed officials continued to deliver hawkish messages.

Fed Governor Philip Jefferson stated,

“We have acted boldly to address rising inflation, and we are committed to taking the further steps necessary. My colleagues and I are resolute that we will bring inflation back down to 2%.”

At the same time, Mary Daly from San Francisco Fed argued that if inflation remains stubbornly high,

“It will require that we follow through on our commitments to bring inflation down, which does mean further rate hikes and holding those restrictive policies in place until we are truly done with bringing inflation back to target.”

From a technical perspective, the DXY holds a neutral to slightly bullish short-term bias, according to indicators on the daily chart.

Although the RSI has gained a positive slope above its midline, the MACD printed a higher red bar. Still, with the DXY breaking above the 20-day SMA, the short-term picture is tilted to the upside.

DXY Daily Chart

On the upside, immediate resistance is seen at the 111.90-112.00 area and Monday’s highs around 112.50. On the other hand, the immediate support level could be found at the 111.00 area, reinforced by the 20-day SMA.

A break below could mount the bearish pressure on the greenback and pave the way to the 110.00 threshold, a loss of which would expose the 109.35 area.

[ad_2]

Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 103,260.67 0.27%
ethereum
Ethereum (ETH) $ 2,509.62 7.37%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.42 3.00%
bnb
BNB (BNB) $ 654.66 2.40%
solana
Solana (SOL) $ 173.45 0.70%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.237397 15.65%
cardano
Cardano (ADA) $ 0.820404 5.23%
tron
TRON (TRX) $ 0.261074 0.06%
staked-ether
Lido Staked Ether (STETH) $ 2,507.72 7.31%
sui
Sui (SUI) $ 4.03 3.14%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 103,096.62 0.21%
chainlink
Chainlink (LINK) $ 16.96 6.00%
avalanche-2
Avalanche (AVAX) $ 25.29 9.45%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,999.40 6.97%
stellar
Stellar (XLM) $ 0.310366 5.10%
shiba-inu
Shiba Inu (SHIB) $ 0.000016 6.01%
hedera-hashgraph
Hedera (HBAR) $ 0.213751 5.68%
hyperliquid
Hyperliquid (HYPE) $ 25.40 2.05%
the-open-network
Toncoin (TON) $ 3.40 3.95%
bitcoin-cash
Bitcoin Cash (BCH) $ 422.80 3.55%
usds
USDS (USDS) $ 1.00 0.00%
leo-token
LEO Token (LEO) $ 8.54 2.33%
litecoin
Litecoin (LTC) $ 103.94 3.95%
polkadot
Polkadot (DOT) $ 5.12 6.87%
weth
WETH (WETH) $ 2,511.16 7.37%
monero
Monero (XMR) $ 321.18 3.02%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,676.88 7.48%
bitget-token
Bitget Token (BGB) $ 4.87 8.56%
pepe
Pepe (PEPE) $ 0.000013 8.38%
pi-network
Pi Network (PI) $ 0.740914 0.80%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999042 0.10%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,197.65 0.15%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
whitebit
WhiteBIT Coin (WBT) $ 30.17 0.33%
uniswap
Uniswap (UNI) $ 6.92 9.38%
bittensor
Bittensor (TAO) $ 456.20 7.47%
near
NEAR Protocol (NEAR) $ 3.18 9.76%
aptos
Aptos (APT) $ 5.85 6.01%
dai
Dai (DAI) $ 1.00 0.01%
aave
Aave (AAVE) $ 226.25 7.36%
ondo-finance
Ondo (ONDO) $ 1.07 5.46%
okb
OKB (OKB) $ 55.05 2.24%
ethereum-classic
Ethereum Classic (ETC) $ 20.18 5.36%
susds
sUSDS (SUSDS) $ 1.05 0.00%
internet-computer
Internet Computer (ICP) $ 5.61 3.42%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
crypto-com-chain
Cronos (CRO) $ 0.10155 0.07%
official-trump
Official Trump (TRUMP) $ 14.35 0.23%