Dollar gains after strong NFP report, pressure on Fed to cut rates reduced

The dollar gained ground on 3 July after a strong NFP report, causing gold to retreat. Total nonfarm for May was 147,000, beating expectations. Unemployment rates have remained stable, reducing pressure on the Fed to cut rates. Inflation data is expected on 15 July, with little anticipation for a rate cut at the Fed’s meeting on 30 July.

Gold prices bounced but were capped by the NFP report. The uptrend may have paused, leading to a sideways trend. Support is seen at $3,250, with resistance around $3,450. ATR and volume are decreasing, with the 20 and 50 SMAs as main references for the short-term direction.

The Euro-dollar uptrend continued in June, reaching a four-year high above $1.18. Capital is moving away from the dollar due to uncertainty in the USA. Overbought conditions suggest a possible pause in the uptrend soon, with support around $1.166 and resistance at $1.1885. Market expectations point to potential ECB cuts and multiple Fed cuts by the end of 2025.

Read more at Yahoo Finance: Limited Bounce for the Dollar After a Stronger NFP