US Dollar Talking Points:
- The US Dollar[1] remains on its backfoot after a pullback last week.
- USD[2] bulls have since posed a build of support ahead of the highly-anticipated FOMC[3] rate decision later this month.
- DailyFX Forecasts are published on a variety of markets such as Gold[4], the US Dollar[5] or the Euro[6] and are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
US Dollar Holds Support After Q4 Pullback
It’s been a pullback type of start to Q4 so far for the US Dollar[10]. The currency came into the fourth quarter with strength, setting a fresh two-year-high last Tuesday[11]. But another disappointing manufacturing ISM report led into a pullback and that hastened on Thursday with a miss on the services portion of the ISM report. Friday’s Non-Farm Payrolls did little to help, as well, as a 0% read in Average Hourly Earnings highlights lagging wage growth; and at this point, buyers remain on the sidelines for the US currency as a number of themes remain in the headlines. Of issue is the October rate decision at the Fed. The bank hasn’t yet talked up another rate cut but markets are highly-expecting one, with a current probability of 78.6% for another 25 basis points of softening when the Fed meets in a few weeks.
In the US Dollar, prices are clinging to support that came into play last Thursday after the disappointing services
