DXY Alert: Be Cautious Ahead of US Payrolls and ISM Services Data

DXY: Be Cautious of Payrolls, ISM Services

Mixed Performance in USD Ahead of Key US Data

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.

Gains and Losses: USD Snapshot

• Stronger vs: GBP, AUD, NZD, MYR
• Weaker vs: TWD, THB, Gold, Silver

This mixed behavior indicates traders are hedging positions before the release of two high-impact US indicators:

• Nonfarm Payrolls (NFP) – a key labor market gauge
• ISM Services PMI – a critical services sector health indicator

Why These Reports Matter

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.

Caution Is Warranted

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.”

Related Tredu Reads:

• US Dollar Struggles Ahead of NFP Report
• Gold Rises as USD Slips Against Safe-Havens
• Will Weak ISM Services PMI Trigger Fed Easing?