The US Dollar Index (DXY) remains stable around 105.50, with markets anticipating a Federal Reserve rate cut on December 18. November’s Nonfarm Payrolls report met expectations with a 227,000 increase, while unemployment ticked up to 4.2%. Average hourly earnings grew by 0.4%, and consumer sentiment beat estimates, rising to 74.
Markets are pricing a 70% likelihood of a 25-basis-point rate cut, supported by recent softer economic data. Equities and bond markets are optimistic, with US 10-year Treasury yields falling to 4.14%.
Technically, the DXY faces resistance at 106.52 and support at 105.53, with a further downside cushion near 104.03 (200-day SMA). Upcoming Fed official speeches will provide more clarity on rate policy.


