The US Dollar has maintained a relatively stable position, with the DXY index showing limited movement. The market’s focus is now on the upcoming release of Nvidia’s earnings report, which could significantly impact market sentiment.
Economic Data and Market Sentiment
The release of the Mortgage Bankers Association’s weekly Mortgage Applications Index has shown a decline, indicating a potential slowdown in the housing market. However, the overall economic outlook remains relatively positive, with equities showing strength across major markets.
The CME Fedwatch Tool continues to indicate a high probability of a 25 basis point rate cut in September, with expectations for further easing in the coming months.
Technical Outlook
The DXY index has shown a short-term recovery from its recent decline. However, the index remains below key resistance levels, indicating potential for further downside. A break below 100.62 could signal a more pronounced decline, with potential support at 99.58.
