US Dollar Closes A Losing Week After Economic Data -

US Dollar Closes A Losing Week After Economic Data

Jan 24, 2025Jeremy ParkinsonFinance0

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The US Dollar Index remains under pressure, testing the 107.50 level after a steep weekly decline of over 2%.

S&P Global Composite PMI signals slower growth at 52.4 in January, compared to 55.4 in December.

Markets now turn their attention to the next week’s Fed decision.

The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, is experiencing sustained losses as it sinks below 107.50, its lowest level this week. US President Trump’s softer tone on proposed tariffs on China added to the currency’s bearish sentiment. Meanwhile, economic data continued to show mixed signals, leaving traders cautious.

Daily digest market movers: US Dollar slips after economic data and Trump remarks

The S&P Global Composite PMI dropped significantly to 52.4 in January from 55.4 in December, showing a slower pace of expansion.

Manufacturing PMI climbed to 50.1, exceeding forecasts of 49.6, reflecting a slight recovery in factory production activity.

Services PMI decreased to 52.8 from 56.8, signaling weaker momentum in service sector growth.

On Thursday, US Initial Jobless Claims rose to 223,000 for the week ending January 18, higher than the prior week’s revised 217,000 figure.

Continuing Jobless Claims jumped by 46,000 to 1.899 million, highlighting increasing challenges in the labor market.

Regarding the new administration’s plans, President Trump softens rhetoric on Chinese tariffs at Davos, suggesting some potential easing of trade tensions.

DXY technical outlook: Signs of deeper bearish momentum
The US Dollar Index (DXY) has dropped below the key 108.00 level, showing continued vulnerability to bearish momentum. The RSI remains under 50, signaling weaker relative strength, while MACD histogram bars deepen in negative territory, suggesting further downside.The 20-day Simple Moving Average (SMA) around 108.00 now acts as a critical resistance level. A failure to reclaim this threshold could lead to additional losses with the next support zone seen near 107.00. Conversely, a recovery above 108.00 could stabilize the Greenback’s outlook and limit further declines.More By This Author:AUD/USD Sticks To Gains Above 0.6300, Over One-Month Top On Weaker USD
Australian Dollar Presents Battle On US Tariffs Clues
USD/CAD Retreats From Multi-Year Top, Hovers Around Mid-1.4400s As Focus Shifts To Canadian CPI

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