Posted 12/11/2023, 1:00:00 PM
US Dollar Rebounds on Strong Jobs Data, Fed Rate Outlook; Key Events Could Impact Direction
- The US dollar rebounded last week due to strong employment data and interest rate projections, ending a 3-week decline.
- Key economic indicators and central bank meetings this week, including the Fed and ECB, may impact the direction of the dollar index.
- EUR/USD faced resistance at 1.1, signaling a pause in its recovery; buying opportunities may arise if support at 1.075 holds.
- The dollar index rose 0.77% last week after better-than-expected US labor data shifted rate cut expectations to later in 2023.
- Technical analysis shows the dollar index needs to break 104.5 resistance to continue strengthening; otherwise the correction momentum may persist.