US Dollar is in the red, if little, as it searches for direction.
The US Dollar Index is predicted to have a significant impact on the PPI and Retail Sales figures.
The US Dollar (USD) confronts a new major challenge in its quest to preserve its position as the “king Dollar.” First and foremost, the European Central Bank (ECB) will decide on interest rates on Thursday. Markets are split on whether the meeting will result in a rise or not, with a 50-50 possibility of either.
The ECB rate decision and announcement will be released at 12:15 GMT, 15 minutes before the market opens. Retail Sales and the Producer Price Index in the United States. Volatility is predicted to rise significantly, with the US Dollar swinging across the board, with EURUSD being the most volatile pair.
Dollar Technical analysis
The Greenback’s movements on Thursday will be heavily influenced by where the Euro goes. Once all data is out and markets have determined whether the ECB rate decision was hawkish or dovish, the ECB rate decision will have a binary impact on the US Dollarindex (DXY). Expect an extremely volatile timeframe between 12:00 GMT and 14:00 GMT, with no true direction to be discovered until the dust settles.
The new high to keep an eye on is 105.16. last Thursday’s peak and a six-month high. The US Dollar Index must first reclaim lost territory from Monday and break above the high of 104.93. After 105.16, the next level to monitor is 105.88, the 2023 high.
On Monday, 104.44 held its ground and refused to allow the DXY to fall any more. The August 25 high accomplished its job and served as a crucial level. If the advance from Tuesday reverses and 104.44 loses way, a significant drop to 103.04 is possible, with the 200-day SMA acting as support.
