USD Trades Subdued Amid Limited Drivers
The US Dollar (USD) traded subdued overnight, in the absence of fresh catalysts, while most major central bank decisions are largely priced in. The Dollar Index (DXY) was last seen at 99.19 levels, according to OCBC FX analysts Frances Cheung and Christopher Wong.
“The sell-off in crypto has also tentatively stabilized overnight. Daily momentum remains mildly bearish while RSI fell. Some consolidation with slight downside bias is expected. Support lies at 99.10 (50 DMA, 50% Fibonacci retracement of May high to September low), and 98.60 (100 DMA). Resistance is at 99.60/70 levels (21, 200 DMAs, 61.8% Fibonacci), and 100.6 (76.4% Fibonacci).”
The December FOMC rate cut is largely priced in, and markets will be watching for guidance on the Fed’s rate cut trajectory into 2026. Elsewhere, the Wall Street Journal reported that the administration of the President of the United States cancelled a series of interviews with finalists for the next Fed Chair. At an event overnight, where Kevin Hassett was present, the President of the United States remarked: “I guess a potential Fed chair is here too. I don’t know. Are we allowed to say that? Potential?”
Powell’s term runs until mid-May, and the President of the United States had earlier indicated that the final pick for the next Fed Chair would be announced in early 2026. The nominee would still require Senate confirmation.