DXY index analysis: US dollar waits for Fed decision, NFP data

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Long USDINR here for 83 and beyondconsolidation at its last leg USD seems to be turning up Nice bullish consolidation structure after a rally. Consolidation at its last leg USD seems to be turning up Nice bullish consolidation structure after a rally. The ECB last week also slowed the pace of its interest rate increases but signalled more tightening to come. Sterling GBPUSD, up a fraction on the day and hovering at an 11-month high of $1.2652, was in particular focus ahead of an expected Bank of England rate increase on Thursday. On the date of publication, Rich Asplund did not have positions in any of the securities mentioned in this article.

« Markets are really just discounting the aftermath of last Friday’s payrolls report, » which came on very strong and knocked gold off its highs, said Daniel Ghali, commodity strategist at TD Securities. « There is a risk that regional bank issues could escalate, posing a broader risk to the financial system and taking the dollar , » said Standard Chartered’s head of G10 FX research, Steve Englander. « The Fed has tended to guide away from the possibility of rate cuts this year, which is somewhat at odds with a rates market which is pricing in cuts, » https://1investing.in/ HSBC analysts said in a note. Last week the Federal Reserve raised rates by 25 basis points but sounded slightly more cautious than peers on the outlook, dropping guidance about the need for future hikes. « Interest rate differentials between the Eurozone and US continue to narrow, removing a headwind for , » said Carol Kong, currency strategist at Commonwealth Bank of Australia. Last week the Fed raised rates by 25 basis points but sounded slightly more cautious than peers on the outlook, dropping guidance about the need for future hikes.

Data published last week showed that the country’s economic growth slowed in the first quarter. Other numbers have shown that retail sales have dropped as inflation remains stubbornly high. The unemployment rate has remained close to a multi-decade low. The Federal Reserve will deliver its interest rate decision this week.

The dollar began the week under pressure on Monday, with traders betting it might have peaked along with U.S. interest rates while keeping a wary eye on looming inflation and loans data. The yen Wednesday posted moderate gains on a decline in T-note yields. Also, the ongoing banking turmoil in the U.S. is fueling safe-haven demand for the yen. In addition, the sell-off in crude prices Wednesday to a 5-week low is supportive of Japan’s energy-dependent economy and the yen. « We expect EUR/USD to remain supported while financial markets continue to price interest rate cuts for the US this year and further interest rate hikes from the ECB. »

However, downward revisions to the last two jobs… Looking to capitalise on rising & falling USD, GBP, EUR rates? Trade forex in minutes with our top-rated broker, eToro. The DXY index will be in the spotlight this week ahead of key events this week. The biggest catalyst for the US dollar will be the interest rate decision by the Federal Reserve. This will be an important decision because of the state of the economy.

Fed decision, NFP data

MACD slowing its ascent, while VolDiv is crossing down itself and below zero line. The US Dollar Index is an index of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners’ currencies. The basket contains the Euro, the British Pound, The Japanese Yen and the Australian Dollar in equal amounts, which are equally weighted. It is geographically balanced and accounts for 80% of worldwide Forex activity.

The US dollar index price moved sideways on Monday morning as investors position for the upcoming economic data and Federal Reserve interest rate decision. The DXY index was trading at $101.87, which was slightly above last month’s low of $100.77. Short term bearish In daily TF, the price structure shows the beginning of a correction after a rise of about 28% , confirmed by a triple top of DXY, a MACD triple top and a bearish divergence of RSI. In monthly TF, we have a strong uptrend due to a huge bullish divergence and a triple bottom. In daily TF, the price structure shows the beginning of a correction after a rise of about 28% , confirmed by a triple top of DXY, a MACD triple top and a bearish divergence of RSI. The US Dollar’s vulnerability has continued to start this week after sliding lower to close out last week.

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The dollar index EURUSD on Wednesday rose by +0.45%. Also, signs of economic strength in the Eurozone were bullish for the euro after Wednesday’s news showed the Eurozone Mar unemployment rate unexpectedly fell to a record low. Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. Gold rose on Monday as the dollar eased, with bullion regaining ground after a sharp retreat in the previous session ahead of inflation data that could shed light on the outlook for U.S. interest rates. « But for the time being, the market is likely to run with the theme of a peak in Fed rates justifying a clear peak in the dollar. » The euro EURUSD, which has rallied nearly 16% from September lows, was up 0.2% to $1.1042 though it has not been able to punch through resistance at $1.11.

The Dollar Index Is Down 4%: What Next For The Forex Market?

This will result in immediate suspension of the commentor and his or her account. Racism, sexism and other forms of discrimination will not be tolerated. The latest inflation readings, a host of Fed speakers, and continued concerns over regional banks highlight the week ahead, along with an update from the House… After breaking first attempt, which I called as temporary correction. We tried to get back in there once, didn’t happen. These factors could determine your portfolio’s fate.

Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. BITCOIN SHORT SET UP BTC made a new big resistance at this level, and we are in a new position to short the market. BTC made a new big resistance at this level, and we are in a new position to short the market. « However, the resilience of big banks makes that unlikely, in our view, » Englander said. « We think that the escalation of debt-ceiling concerns is a more likely source of risk-off dollar strength via demand for immediate dollar liquidity. »

• Along with the U.S. consumer price index due on Wednesday, traders are also keeping a tab on developments surrounding the debt ceiling.
• USD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU.
• BITCOIN SHORT SET UP BTC made a new big resistance at this level, and we are in a new position to short the market.
• Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

The DXY index is nearing the bottom end of the range after failing to overcome a descending trend line to the topside last week. After Germany’s industrial production data today, US wholesale inventory figures will be released. The Australian government will be delivering its annual budget on Tuesday night local time when increases in the taxing of liquified natural gas exports are expected.

Trading on margin increases the financial risks. There is a nervousness that hangs over the capital markets. Although US banks shares recovered at the end of last week, many continue to see the sector’s challenges as the… By Laura Matthews and Alun John NEW YORK/LONDON – The dollar remained relatively weaker against most of its major peers on Monday, as traders wait for the Federal…

All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The Eurozone Mar unemployment rate unexpectedly fell -0.1 to a record low of 6.5%, showing a stronger labor market than expectations of no change at 6.6%. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.

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The US dollar index has drifted upwards in the past few days. DOLLAR OUTLOOK FOR THE NEXT 3 MONTHS I have noticed a bearish rally is approaching on DOLLAR and economic news seem to be the driven force.. I have noticed a bearish rally is approaching on DOLLAR and economic news seem to be the driven force.. DXYUSD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU. USD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU.

Looking ahead this week, the focus will be on US CPI and PPI on Wednesday and Thursday respectively after last week’s 25 basis point hike by the Fed. Treasury yields are mostly unchanged across the curve after ticking higher on Friday, mostly in the short end with the 2-year bond back above 3.92% after visiting 3.56% dollar index tradingview last month. High beta risk assets such as the Aussie Dollar have seen modest gains so far today while EUR/USD and GBP/USD remain near the highs of 2023. Later on Monday, the Fed’s loan officer survey might show whether and how hard banks are tightening up on credit after three U.S. lenders failed over recent weeks.

U.S. Dollar / Indian Rupee

Sterling GBPUSD, hovering at an 11-month high of $1.2652, was also in focus ahead of an expected Bank of England rate increase on Thursday that markets do not think will be the last. Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.

Also, Wednesday’s decline in global bond yields today is bullish for metals. In addition, precious metals have safe-haven support on concerns about the health of the U.S. banking system and as the U.S. government gets nearer to default without an extension of the debt ceiling. The US Dollar Index, also known as DXY, is used by traders seeking a measure of the value of USD against a basket of currencies used by US trade partners. The index will rise if the Dollar strengthens against these currencies and will fall if the Dollar weakens against these currencies. Plan your technical analysis of the US Dollar Index by tracking its price in the chart and keep up with the latest market movements with news, advice pieces, and the dollar index forecast.

The pound has also been firming versus the euro, which was last at 87.36 pence EURGBP, having dipped to 87.11 pence on Friday, its softest against the British currency this year. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse. Despite recession talk, the U.S. labor market continues to flex its muscle, with 253,000 jobs added in April.

Take your analysis to the next level with our full suite of features, known and used by millions throughout the trading world. Crude oil and gold are both slightly higher with the WTI futures contract above US$ 71.50 bbl while the Brent contract is near US$75.50 bbl. Futures markets are pointing toward a slightly soft start to the North American cash session at the time of going to print. Markets saw a 91% chance of the Fed holding rates at their current level in June, and a 33% chance of a rate cut in July, according to CME’s FedWatch tool.