USD strengthens as ISM PMI beats expectations, Powell signals Fed pause

The US dollar gained strength following better-than-expected ISM Manufacturing PMI and JOLTS data, pushing the 10-year Treasury yield up 2 basis points to 4.248%. GBPUSD declined to test its 100-hour moving average, turning negative for the day, while EURUSD retreated toward unchanged levels after earlier gains. Fed Chair Powell confirmed the central bank remains on hold while monitoring incoming economic data. Technical analysis shows EURUSD facing immediate support between 1.1753-1.1769, a critical zone that could determine near-term direction. The improved US economic indicators have reinforced market expectations that the Fed will maintain its current policy stance, providing underlying support for the dollar. Traders should watch these key technical levels closely, as a break below support in EURUSD could signal further dollar strength, while GBPUSD's ability to hold the 100-hour MA will be crucial for determining whether the pound can stabilize or face additional selling pressure.