Dollar begins to rebound after NFP data
The Fed's possibility of making another jumbo cut quickly faded following September's NFP report, which renewed confidence in the US job market. According to CME FedWatch, the likelihood of a 50bp cut at the November FOMC has dropped from 36.8% to 0%, while the probability of a 25bp cut has surged to 88.8%. It's worth noting that the likelihood of a rate freeze has risen from 0% to 11.2%. Due to this, the dollar bounced back swiftly as expectations grew that the Fed's dovish stance would not persist.
DXY quickly breached the trendline and climbed above the 102.50 level. The price holds above both EMAs, sending out an apparent bullish signal. If DXY sustains support above both EMAs, the price could gain upward momentum toward the 103.30 resistance. Conversely, if DXY breaks the 101.60 support, where EMA21 coincides, the price may fall further to 101.10.
