The US Dollar’s attempt to bounce up from multi-month lows remains capped below the 0.8700 mark. The pair’s bearish momentum remains intact with the market awaiting the release of the preliminary US S&P Global PMIs and the NY Empire State Manufacturing Index. The Federal Reserve signaled the end of rate hikes on Wednesday and the interest rate projections suggested a median of 75 bps rate hikes in 2024. This has boosted investors’ appetite for risk, sending the US Dollar sharply lower across the board.

Later today, the US NY Manufacturing Index and December’s Preliminary PMIs are expected to show a mild deterioration. This endorses the view of a soft landing, which allows the Fed to roll back its restrictive policy and might increase negative pressure on the USD. In Switzerland, the SNB kept rates on hold on Thursday and lowered inflation expectations. The bank’s statement was seen as dovishly-tilted, which allowed some respite to the pair. From a technical perspective, the pair maintains its bearish bias intact with the RSI above oversold levels, which allows for further decline. Bulls are now testing 0.8660. Below here, 0.8555 is a key support level. On the upside, resistances are at 0.8730 and 0.8815.