USD index is trading around the lower end of its range, around 105.70.
Following the recent fall of the 106.00 support level, the USD Index (DXY). Which measures the greenback against a basket of its key rival currencies, is under pressure.
The USD Index is focused on PPI and FOMC Minutes.
The index extends the negative trend that began shortly after achieving new yearly highs. Near 107.30 (October 3) and trades near 105.70 on Wednesday, setting new monthly lows.
Meanwhile, the dollar has been losing momentum in tandem with the commencement of Some Fed speakers have taken a dovish tone. Despite the assumption that the Federal Reserve’s tighter-for-longer policy remains in place for the time being. The possibility of another rate rise before the end of the year appears to have reduced recently.
Later in the NA session, the publication of September Producer Prices is likely to provide another indication of US inflation. While the FOMC Minutes are expected to draw all focus into the European evening/night. Additional information includes the MBA’s weekly report on Mortgage Applications.
What to watch for in the USD
Price activity in the area of the index remained weak and in the neighborhood of monthly lows around 105.70 ahead of the publication of significant data in the US schedule on Tuesday.
Meanwhile, the dollar continues to be supported by the strength of the US economy, which looks to be sustained by the Federal Reserve’s renewed tighter-for-longer approach.
This week’s key events in the United States include: MBA Mortgage Applications, Producer Prices, FOMC Minutes (Wednesday), Initial Jobless Claims, Inflation Rate (Thursday), and Flash Consumer (Friday).
On the back burner: the ongoing discussion about whether the US economy will have a soft or harsh landing. Rate decreases in early 2024 are being discussed. Geopolitical effervescence in relation to Russia and China.
Relevant USD Index levels
The USD index is now up 0.01% at 105.78, with a break of 107.34 (2023 high October 3) opening the way to 107.99 (weekly high November 21 2022). And eventually 110.99. (maximum November 10, 2022). On the downside. The next level of support is at 105.65 (low September 29), followed by 104.42 (weekly low September 11) and 103.18 (200-day SMA).
