- The DXY Index soared above the 20-day SMA to reach 104.05, marking a 0.75% winning week.
- November brought accelerated United States NFPs and Average Hourly Earnings, along with a decrease in the Unemployment Rate.
- Next Tuesday, the United States will report CPI inflation.
The United States Dollar (USD) continued its dominance in the monetary markets, surging to 104.05 due to positive labor market figures and rising yields. This suggests that markets are delaying rate cuts in 2024. The USD Index (DXY) gains were supported by a strong November economic report, including Average Hourly Earnings, Unemployment Rate and Nonfarm Payrolls, all contributing to hawkish bets on the Federal Reserve (Fed).
October’s mild inflation figures had initially dampened expectations, but signals of further tightening from the Fed and robust labor market data signal a shift. The upcoming November inflation data and the Fed meeting next week will be crucial for the USD’s short-term trajectory.
Daily Market Movers: United States Dollar rising on strong labor market data
- Today, the United States dollar is gaining strength, driven by strong labor market data and rising yields.
- November’s Average Hourly Earnings MoM figures surpassed expectations, and Nonfarm Payrolls added 199K new jobs to the economy.
- The Unemployment Rate came in at 3.7%, lower than expected.
- United States bond yields are on the rise.
- The market expects no rate hike in the December Fed meeting but anticipates less cutting in 2024.
- Next week’s release of the Consumer Price Index (CPI) for November will shape expectations for future Fed decisions.
Technical Analysis: United States Dollar bulls make a move, but bears still in command
The daily chart shows a conflicted landscape for the United States Dollar, with mixed signals from the RSI and MACD indicators. The index sits above the 20-day SMA, yet below the 100-day SMA.
