On Tuesday, the dollar index dropped below 104 for the second consecutive day due to cautious market sentiments regarding a series of upcoming US economic reports. These reports have the potential to impact expectations concerning interest rates. Investors are particularly interested in today’s job data, as well as the PCE price index, personal income and spending data, ISM manufacturing PMI, the second estimate of Q2 GDP growth, and the monthly jobs report later in the week.
Today, the US stock futures seem to be stable as the month of August comes to an end. The markets have seen a period of consolidation during this month. The futures contracts linked to the three major indices are trading near the break-even point. The Dow Jones has increased by 0.62%, the S&P 500 has advanced by 0.63%, and the Nasdaq Composite has jumped by 0.84%. All three indices have risen for the second consecutive session. Additionally, US-listed Chinese stocks have also increased in value after Beijing announced they would be cutting trading fees in half.
Looking technically at the charts, the purchasing power declined on the momentum indicators for a 4-hour interval, but the index is still trading above the trend line prevailing on it since last July 18, today trading between the 20- and 50-day moving averages, but it settled above the 50-day average, which it usually receives around. The index is a new force of buying impulse, so the index is likely to decline around 103.60 points, to touch the 50-day average as well as the bullish trend line prevailing over it, as the price behavior is monitored around them, and in case of stability above it, we will target 104.00 levels again.
