Anna 
The USD Index, tracking the greenback against a basket of currencies, is grappling with selling pressure after surpassing the 104.00 level, encountering notable resistance at 104.20, coinciding with the 100-day Simple Moving Average (SMA). This trend unfolds amidst heightened market speculation that the Federal Reserve might pivot towards rate cuts in response to signs of economic deceleration.
On Thanksgiving Day, as trading activity winds down in the United States, the USD Index, also known as the DXY, is approaching support around November’s low of 103.17. This movement underscores the resilience of the U.S. economy despite hawkish remarks from Federal Reserve officials.
Looking ahead to Friday, market attention will shift to the release of S&P Global Flash Manufacturing and Services PMIs data. Potential market breakouts loom if the data exceeds recent benchmarks, such as the weekly high of October 26, or maintains levels above psychological thresholds like the DXY’s round figure at 100.00. Against the backdrop of a gradually cooling labor market and the anticipation of interest rate cuts, these indicators could significantly impact currency valuations and guide investor strategies in the forthcoming sessions.
