According to the analysis, the Fed may not raise interest rates, but the dollar is likely to continue to struggle in the deep water。This expectation stems largely from the fact that countries agreed to trade without involving the U.S. domestic currency。This creates an imbalance between supply and demand for the dollar, which affects the valuation of the dollar in the market.。

Another factor is inflation.。Inflation will take time to get noticed as the Fed chairman signals that inflation will stagnate at high levels for some time。Purchasing Managers Index (PMI) data is coming soon, which may trigger an economic recovery。

US economic data

Dollar down, retail sales up 0 in November.3%, jobless claims better than analysts expected。Overall, U.S. economic data exceeded everyone's expectations, creating modest support for the national currency.。

The monthly rate of industrial production in November was 0.3%, the previous value is -0.6%。Consensus value for same month capacity utilization is 79.1%, the former value is 78.9%。December S & P Global Composite PMI to Reach Consensus。Manufacturing and services PMI were 49.3 and 50.6。The previous values were 49.4 and 50.8 in the same order.。

One trend that could affect the market is the upcoming decision on the Fed's interest rate.。Reportedly, no further rate hikes are expected。If you don't cut interest rates, keeping them stagnant is also an ideal option.。A rate cut would instead free up more investment capital, which would promote portfolio diversification and boost the economy along with the dollar。

Its trading currency pairs are playing a fair game of ups and downs.。The dollar index (DXY) closed last at 101.9560, followed by 102.0940。This is when it competes with similar currencies。

EUR / USD Status

The currency pair has touched 1.1000, testing highs of the past two months 1.1010, which occurred against the backdrop of the ECB keeping interest rates unchanged。HCIP composite PMI initial value from 47.6 to 48.0。

GBP / USD Status

Bank of England decides to stick to hawkish tendencies。This boosted the pound in the market。The currency pair touched 1.2794 points, the effect is obvious。BoE pundits say they refuse to be affected by the Fed's gravity as long as inflation seems to take root at home。

USD / CAD Status

Canadian Dollar Outperforms After Crude Oil Prices Rebound。However, the pair slipped for a second day in a row。The dollar's struggles were indirectly highlighted by data released in the United States, where the pair broke through early December lows of 1.3470 will be affected。

AUD / USD Status

Dollar and Australian dollar pair move bullish。The currency pair is at a 4-month high of 0.6730, currently moving to 0.6700 up。More details on AUD / USD to emerge after Judo Bank composite PMI。

Gold has been held hostage by a wave of dollar struggles.。Despite holding on to some gains, the rally is waning。The current test is to stay above the relevant technical level of $2,040。

Market focus on PMI

PMI measures the health of two sectors in a country。The two sectors are manufacturing and services。These two sectors are the pillars of economic recovery and therefore of the currency。In the current situation, a more robust chart is essential to support dollar prices and cross-border business relations.。PMI report will highlight whether the economy can get back on track in coming months。

Dollar's Struggle May Remain Obvious Until Upbeat PMI Report Boosts Market Confidence。This could create opportunities for US FX brokers to attract new clients seeking to take advantage of the currency's potential range expansion。

Conclusion

US data shows dollar struggling。A positive PMI report helps to better understand whether the currency and the economy will develop better in the future。rate hikes are less likely, while inflation may create better conditions for a seamless flow of capital。