US Dollar Talking Points:
- The US Dollar remains on its backfoot after a pullback last week.
- USD bulls have since posed a build of support ahead of the highly-anticipated FOMC rate decision later this month.
- DailyFX Forecasts are published on a variety of markets such as Gold, the US Dollar or the Euro and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
US Dollar Holds Support After Q4 Pullback
It’s been a pullback type of start to Q4 so far for the US Dollar. The currency came into the fourth quarter with strength, setting a fresh two-year-high last Tuesday. 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