US Dollar Rises Ahead of Michigan Sentiment Data and Fed News
The US Dollar (USD) edged higher on Friday as markets absorbed the Fed’s rate cut to a 4.50%-4.75% range. Fed Chairman Jerome Powell, addressing speculation about his role under President-elect Trump, reaffirmed the Fed’s independence and stated he will not resign.
The preliminary Michigan Consumer Sentiment Index for November, a key indicator of consumer confidence and inflation expectations, is due later in the day. European stocks are down, and US futures are showing weakness, with analysts expecting a 71.3% chance of another Fed rate cut in December.
DXY Technical Analysis
The US Dollar Index (DXY) softened slightly on Thursday but remains supported by Powell’s reassurances. Resistance is at 105.53 and 105.89, while downside support is around 104.00 and the 200-day SMA at 103.86.