Created
: 2025.10.01
2025.10.01 17:54
US Dollar (USD) traded a touch softer overnight in amid concerns of US government shutdown. DXY last seen at 97.62 levels. BLS has already confirmed that it will delay the release of the jobs report (due on Fri) if the US government shutdown occurs, OCBC's FX analysts Frances Cheung and Christopher Wong note.
"This puts greater emphasis on Fedspeaks and other data releases, including ADP employment, ISM manufacturing today. Softer print is likely to weigh on USD. Proxy play may likely include long gold, JPY; short USD if the shutdown persists for longer, in turn affecting risk appetite or even economic activities. Elsewhere on the latest round of sectoral tariffs, Fed's Goolsbee said the most recent round of tariffs may be causing businesses in his district to again pause decision-making in order to see where the levies settle. "
"Daily momentum is mild bullish while RSI shows tentative signs of turning higher. Resistance at 98.40/60 levels (100 DMA, 38.2% fibo retracement of May high to Sep low), 99 levels (50% fibo). Support at 97.60 (21 DMA, 23.6% fibo), 97.20 levels. On Fedspeaks overnight, Logan indicated that Fed should proceed cautiously on further rate cuts and there may be little room for more rate cuts. Susan Collins said further interest-rate reductions may be appropriate in 2025 given a weaker labor market, but officials need to remain on guard against the possibility of persistent inflation."
"This is consistent with the cautious remarks made by other Fed officials. Last week, Goolsbee said that he could be less willing to support 'overly frontloading a lot of rate cuts' on the presumption that inflation will just be transitory and go away as many midwest businesses are still concerned that inflation was not under control. Fed Chair Powell also said that market expectations for another 2 cuts this year were far from a done deal."
Created
: 2025.10.01
Last updated
: 2025.10.01
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy