Deutsche Bank: PMI Data Weakened Fed Rate Cut Expectations

The DXY is trading at 98.69, nearly flat over the past 24 hours. The RSI at 53 is in neutral territory, while the MACD shows weak positive momentum just above its signal line. The price is above but close to the 20- and 50-day moving averages, indicating short-term direction uncertainty. News that Deutsche Bank's PMI data has weakened Fed rate cut expectations could support the DXY, but the current technical picture offers no clear direction. Therefore, I expect a sideways trend in the near term.

USDTRY is trading at 45.06, remaining above its 20- and 50-day moving averages. The RSI at 57 maintains a bullish bias, while the MACD is in positive territory above its signal line. News from Deutsche Bank that PMI data has weakened expectations for a Fed rate cut could broadly support the dollar. However, upside movement in the pair is expected to remain limited, with the current trend likely to persist.

The news headline indicates that PMI data has weakened expectations for a Fed rate cut. This is generally perceived as a negative signal for equity markets. Technical indicators also support this view: the RSI is below 50 (49.8) and the price is below the 20-day moving average (27,165) at 27,030. The MACD remains below the signal line, pointing to short-term weakness. However, since the price is above the 50-day moving average (26,895), the decline may be limited.

The headline indicates that PMI data has weakened expectations for a Fed rate cut. This could reduce market hopes for a rate cut, potentially putting pressure on stock prices. Technically, the SPX closed below its 20-day moving average (7151), with the RSI neutral at 50. The MACD remains below the signal line, suggesting short-term weakness. However, the price is holding above the 50-day moving average (7126), indicating that the decline may be limited. A slight downward trend can be expected in the short term.