The US Dollar is consolidating near multi-week highs, supported by robust jobs data that affirms the Federal Reserve's steady interest rate stance. With political overhangs easing and technical patterns leaning bullish, the key question is whether the Dollar Index can power past resistance to hit the $100 mark. This setup creates specific technical levels for traders to watch in both EUR/USD and GBP/USD, which remain vulnerable to further downside against the strengthening greenback.
Major Points:
The US Dollar Index (DXY) is holding strong near $99.50, boosted by a surprisingly strong labor market (jobless claims fell to 198K).
The data reinforces the Federal Reserve's likely pause on rates, with markets seeing a 95% chance of no change in January and potential cuts pushed to June.
Political stability supports the Dollar, as Fed Chair Powell is confirmed to remain in his role, easing uncertainty.
Technically, the DXY is in a rising channel. A break above key resistance at 99.745 could open the path toward the psychologically key $100 level.
For traders: GBP/USD is under bearish pressure watching $1.33612 support, while EUR/USD maintains a bearish bias below $1.16815 resistance.
