The greenback, in terms of the USD Index (DXY), returns to the negative territory following Thursday’s decent advance.
The index keeps the erratic performance so far this week and now gives away part of Thursday’s rebound to the area north of 107.00 the figure.
In the meantime, the lack of traction seems to have returned to the US money market following a firm bounce in yields in the previous session, all in response to hawkish comments from St. Louis Fed J.Bullard (voter, hawk).
On the latter, it is worth recalling that Bullard expects the minimum interest rate to be around 5.00%-5.25%, while he removed weigh from the recent lower-than-expected US inflation figures and motivated speculation of a Fed’s pivot to dwindle somewhat.
Later in the NA session, the CB Leading Index is due seconded by Existing Home Sales and the speech by Boston Fed S.Collins (voter, centrist).
Price action around the dollar remains mixed and relegates the index to keep navigating the area around 106.50, all amidst a broad-based consolidative theme.
In the meantime, the greenback is expected to remain under the microscope amidst persistent investors’ repricing of a probable slower pace of the Fed’s rate path in the upcoming months.
Key events in the US this week: CB Leading Index, Existing Home Sales (Friday).
Eminent issues on the back boiler: US midterm elections. Hard/soft/softish? landing of the US economy. Prospects for further rate hikes by the Federal Reserve vs. speculation of a recession in the next months. Fed’s pivot. Geopolitical effervescence vs. Russia and China. US-China persistent trade conflict.
Now, the index is retreating 0.16% at 106.51 and the breakdown of 105.34 (monthly low November 15) would open the door to 105.05 (200-day SMA) and finally 104.63 (monthly low August 10). On the other hand, the next up barrier aligns at 109.15 (100-day SMA) seconded by 110.76 (55-day SMA) and then 113.14 (monthly high November 3).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.