DXY: PPI, Initial Jobless Claims up next – OCBC
Source Fxstreet
The US Dollar (USD) bounced overnight after core CPI, real hourly earnings report surprised to the upside, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
USD shorts may just get another squeeze again
“The upside surprise in US data serves as a reminder how crowded USD shorts can further be squeezed out – these also underscores how US data can prove to be asymmetric to USD price action. Today, we have PPI and initial jobless claims. Another better-than-expected print in favour of US may well see dovish expectation being scaled back.”
“On this note, USD shorts may just get another squeeze again. DXY was last at 101.82. Daily momentum is bullish while RSI rose. Resistance at 102.20 (23.6% fibo retracement of 2023 high to 2024 low). Support at 100.50 levels.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Silver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
The EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
Data shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Related Instrument
