USD Index rises beyond 103,000 as attention shifts to Powell and the information

Market Analytics and Considerations

Key Notes

• The index reclaims the 103.00 mark while alternating among losses and increases.
• On Tuesday, US yields trade in an erratic manner throughout the curve.
• Chief Powell subsequently makes a speech at a gathering in Sweden.

The USD Index (DXY), which evaluates the worth of the dollar against a group of its principal competitors’ currencies, regains its cheer on Tuesday and aims to continue its march over the 103.00 barrier.

The IBD/TIPP Economic Optimism Indicator, the NFIB Business Sentiment Benchmark, and the monthly statistic of Wholesale Stocks are all due later during in the NA market hours in the US data sector.

What to watch out for about USD

The greenback remains under stress in the 103.00 range despite the current modest rebound due to investors’ widespread preference for risky assets.

Contrary to the signal from the most recent FOMC Proceedings for the present year, the mixed findings from the United States Nonfarm Payrolls for the December month (released last Friday) seem to have revived the idea of a likely policy shift by the Fed in the coming months.

The tightening labor situation, persistently high inflation, and the robust economy are also seen as supporting the Federal Reserve’s firm message and its sequence of rate increases.

Significant problems with the rear boiler: Firm, Smooth, or Slightly soft? the recovery of the US economy. Future rate increases by the Federal Reserve against estimates of a depression in the coming months. Fed’s reversal. geopolitical eagerness in opposition to China and Russia. US-China trade dispute.

Applicable USD Index tiers

The indicator is pretty much up 0.12percentage points at 103.29, and the next level of resistance is at 105.63 (the month peak from Jan 6), then 106.35 (the 200-day SMA), and finally 107.19. (week top November 30). On the other hand, if 102.94 (the month level from Jan 9) were to be breached, it would fall to 101.29 (the month bottom from May 30) and finally 100.00. (psychological mark).

Daily SMA