- The dollar pares losses and returns above 148.00.
- A set of positive US data refutes the theory of Fed easing.
- USD/JPY: Consolidating between 145.50 and 146.90 – UOB.
The greenback surged from session lows at 147.00 to pare losses from the Asian and European sessions and return to levels above 148.00. The release of a set of better-than-expected US macroeconomic indicators has boosted a hitherto weak US dollar.
US data refutes the theory of Fed easing
Macroeconomic figures from the US rattled FX markets on Tuesday, improving the sentiment about the US economic momentum and undermining the idea that the Federal Reserve might be forced to consider slowing down its monetary tightening path in December. This new scenario has sent the dollar and US treasury bond yields surging.
US manufacturing activity has beaten expectations in October, easing concerns about the possibility of a certain economic softening triggered by previous disappointing figures. The US ISM Manufacturing PMI has posted a 50.2 reading, against the 50 expected by the market, while the S&P PMI confirmed the upbeat news with the October reading improving to 50.4 and returning to figures consistent with expansion, against market expectations of a flat performance at 49.9.
Furthermore, the JOLTS job openings have registered an increment to 10.7 million vacancies in September, up from 12.2 million in August, and against market expectations of a decline to 10 M. These figures show the tight conditions of theUS labor market, despite the Fed’s efforts to cool it off in order to curb inflation.
The US Federal Reserve’s monetary policy meeting, due on Wednesday remains the main attraction this week. The Fed is widely expected to hike rates by 75 basis points, but the market was increasingly confident that the bank would signal a softer hike in December, a theory that has come into question after today’s releases.
USD/JPY remains consolidating between 145.50 and 149.60 – UOB
From a wider perspective, FX analysts at UOB see the pair in a consolidative range between 145.50 and 149.60: “USD (…) dipped to 145.10 before rebounding strongly and the build-up in downward momentum faded quickly. USD appears to have moved into a consolidation phase and is likely to trade between 145.50 and 149.60 for the time being.”
Te3chnical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD recovers toward 1.0500 after mixed US PMI data
EUR/USD rebounds toward 1.0500 in the American session on Friday after the data from the US showed that the business activity in the private sector expanded at a softer pace than anticipated in early February. The pair remains on track to end the week with little changed.

GBP/USD rises above 1.2650, looks to post weekly gains
GBP/USD regains its traction and trades above 1.2650 in the second half of the day on Friday. The data from the US showed that the S&P Global Services PMI dropped into the contraction territory below 50 in February, causing the US Dollar to lose strength and helping the pair edge higher.

Gold holds above $2,930 as US yields edge lower
Gold holds above $2,930 after correcting from the record-high it set above $2,950 on Thursday. Following the mixed PMI data from the US, the benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and allows XAU/USD to hold its ground.

Crypto exchange Bybit hacked for $1.4 billion worth of ETH
Following a security breach first spotted by crypto investigator ZachXBT, crypto exchange Bybit announced that it suffered a hack where an attacker compromised one of its ETH wallets.

Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK
We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.