Forecasting the upcoming week: US Dollar struggles near 96.80 ahead of PCE, Fed speakers

💡 DMK Insight

The USD’s recent dip highlights a critical moment for forex traders: Despite a brief uptick from positive jobs data, the overall trend shows weakness. The addition of 130K jobs and a drop in the unemployment rate to 4.3% might suggest a resilient labor market, but it hasn’t been enough to sustain the dollar’s strength. This could signal a shift in trader sentiment, especially as the market weighs the Federal Reserve’s next moves. If the USD continues to falter, it could create opportunities for pairs like EUR/USD or GBP/USD, which may gain traction. Watch for key resistance levels in these pairs, particularly around 1.10 for EUR/USD and 1.30 for GBP/USD, as they could indicate where the dollar’s weakness might stabilize or reverse. On the flip side, if the Fed leans towards tightening in response to this data, we might see a sudden reversal in the dollar’s fortunes. Keep an eye on upcoming economic indicators and Fed statements for clues on potential volatility. The immediate focus should be on how the dollar reacts in the coming days, especially if it tests those resistance levels.