Is the #DXY up to a big fall ?

27 окт.

Hello,

#DXY has found a support above the 100 level after 3 months of dropping, Market previoussly has weighted a large rate cut and possible recession, this anticapation spread a wide belief that the FEDS will cut rates rapidly.

The #SPX dropped 10%, the #US10Y dropped from 4.1% to 3.5% and the DXY as well, After all the following data showed the Market over reacted to the negative Unemployment rise to 4.3% and the NFP @ 114K, as well as the the jobless claims above 250K

Feds Response
In response to the Data, the FEDS cur 50 BP and decreased the amound of fund he is pulling out from the market in his balance sheet. Consequentely, we have noticed the #UNRATE dropped to 4.2 and the NFP increased above 250K as well as claims dropped to 240K. Keeping in mind inflation is dropping really well as forecasted.

As a result, Feds didnt have to have an emergency rate cut or rush the cuts and risk the infaltion to rise again.

For the #DXY, it should start droppig from 104.70 level, or max 105.

Next levels to watch 104.20 and 103.50 then 101