The US Dollar (USD) remained relatively unchanged on Tuesday, unaffected by the lack of significant economic data releases. Investors are focused on the upcoming presidential debate between former President Donald Trump and Vice President Kamala Harris, which could potentially influence market sentiment.
While the economic calendar is relatively quiet today, the speech by Federal Reserve Vice Chair for Supervision Michael Barr is not expected to have a major impact as the Fed is currently in its blackout period ahead of the Federal Open Market Committee (FOMC) meeting on September 17-18.
US Dollar Market Overview
- Economic Indicators: The NFIB Business Optimism Index for August came in slightly below expectations, while the OPEC is set to release its monthly Oil Market Report.
- Federal Reserve: Federal Reserve Vice Chair Michael Barr’s speech is not expected to influence market sentiment due to the Fed’s blackout period.
- Equities: Stock markets are trading mixed, with some profit-taking evident in Europe and US futures.
- Interest Rate Expectations: The CME Fedwatch Tool continues to show a high probability of a 25 basis points (bps) interest rate cut by the Fed on September 18.
- US Treasury: The US Treasury is set to distribute a 3-year note later today.
US Dollar Technical Analysis
The US Dollar Index (DXY) is currently trading within a range, awaiting more clarity on the Fed’s interest rate cut and potential geopolitical catalysts. The index is facing resistance at 101.90 and support at 100.62. A break above the resistance level could lead to further gains, while a break below the support level could signal a potential downtrend.
