USD Index correcting lower, with 103.80 support on focus, The US Dollar is trading lower on Monday weighed by a positive market sentiment after Friday’s Nonfarm payrolls data confirmed the theory of cooling inflationary pressures with a resilient economy, consistent with the theory of a soft economic landing by the end of the year.
Beyond that, the positive market reaction to the small efforts of the Chinese authorities to shore up their economy is fuelling risk appetite, a sentiment that is expected to extend into a calm US session, where markets are closed on Labour Day holidays.
The favorable market mood is weighing on the US Dollar, which is losing momentum. next support lies at 103. 80, where prices will hit the 4h 50 SMA ahead of 103.35 and 102.95. Resistances are 104.45 and 104.70.