Dollar Rallies, A Second Thought for July Fed Cut?
The US Non-farm payrolls increased by 224,00 in June versus the forecasts of 160,000. DXY attracts bids across the board adding about 40 pips against the majors.
The strong job number gives headache to investors who have already discounted a 0.25 percent cut in July and one more before the end of the year. Fed has to think now twice before proceeding to rate cut in the end of July.
DXY managed to breach the 100 day moving average at 97.07 and stopped just shy of the 50 day moving average at 97.27. The positive momentum gains strength and now I am looking for a sustained move above 97.27 the 50 day moving average to enter long positions as this will signal the return of buyers in the index. On the downside immediate support stands at 97 psychological mark while more bids will emerge at 96.72 today’s low.Don’t miss a beat! Follow us on Twitter.