By tredu.com • 7/3/2025
Tredu
The US Dollar (USD) traded in a mixed fashion overnight, reflecting market caution ahead of major economic data. The US Dollar Index (DXY) was last seen around 96.83, showing resilience against several G10 currencies but slipping against some Asian currencies like the Taiwan Dollar (TWD) and Thai Baht (THB), as well as precious metals.
This mixed behavior indicates traders are hedging positions before the release of two high-impact US indicators:
The NFP data could signal the direction of US employment momentum and Federal Reserve policy intentions, especially as markets speculate on rate cuts in the near future.
Meanwhile, a soft ISM Services PMI reading could trigger more USD weakness, while a surprise to the upside may temporarily boost the greenback.
Given the current volatility in the US macroeconomic outlook, analysts urge traders to be cautious:
“The US Dollar's next directional move hinges on how these two datasets land. Until then, DXY remains vulnerable to both upside surprises and deeper pullbacks.”
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