The US dollar is trading with multidirectional dynamics, consolidating near the level of 133.75.
The US currency is trying to build on the upward momentum that formed on Tuesday. At the same time, activity on the market is decreasing towards the end of the week, as traders prefer to wait for the publication of the final report on the US labor market for July, scheduled for Friday. Current forecasts assume a moderate slowdown in Non-Farm Payrolls from 372.0 thousand to 250.0 thousand. At the same time, other parameters of the labor market may remain unchanged, which will reflect the stability of this sector of the economy and give the US Federal Reserve additional space in choosing the vector of monetary policy.
Today, data on the dynamics of Jobless Claims will be released, as well as a speech by a member of the Federal Open Market Committee of the US Federal Reserve (FOMC) Loretta Mester. It is worth noting that the latest statements by the representatives of the regulator turned out to be quite tough. Traditional "doves" Mary Daly and Charles Evans unexpectedly reflected the agency's determination to continue fight against inflation through further significant interest rate increases.
In turn, the Bank of Japan announced the suspension of the project to introduce the Central bank digital currency (CBDC), despite the successful tests that have been underway since 2021. The main reason is low demand among the population and its focus on Internet banking services and other methods of payment with electronic money, including using traditional credit cards and fiat money. Earlier, the Governor of the Japanese regulator, Haruhiko Kuroda, noted that the launch of the digital yen will take place no earlier than 2026, and the Bank of Japan will decide on this along with other institutions.
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing from above, reflecting the emergence of ambiguous dynamics in the short term. MACD indicator tries to reverse to growth and is getting ready to form a new buy signal (the histogram should consolidate above the signal line). Stochastic maintains a strong upward direction, indicating the potential for "bullish" trend in the ultra-short term.
Resistance levels: 134.54, 135.57, 136.69, 137.50. | Support levels: 133.00, 132.00, 131.00, 130.00.