DXY went nowhere in October as it finished the week lower than it started.
US Dollar (USD) is encountering challenges as it appears. That its months-long upswing has come to an official end. The US Dollar Index (DXY) weekly chart indicates that, from a purely technical perspective. Moreover the index has been trading sideways for the past three weeks. US Dollar Index is in a distribution phase ahead of either a significant leg higher or lower, according to the Wyckoff Trading philosophy.
Traders will have a light Monday in terms of economic data before additional data points later this week. The US Gross Domestic Product (GDP) figures for the third quarter are scheduled to be released on Thursday, making it the main event of the day.
The Personal Consumption Expenditures Price Index. The preferred inflation indicator of the Federal Reserve, will be released on Friday.
Daily summary: The US dollar is stuck in a bind
Markets are being held in check by the Israeli ground offensive’s delay. Because investors may be factoring in a higher level of risk in the event that a proxy war breaks out.
The Chicago Fed National Activity Index for September is one set of data. That will be available this Monday at 12:30 GMT. Print from earlier was at -0.16. At 15:30 GMT. The US Treasury will be back in the markets with a bill auction for three and six months.
The week has started poorly for stocks. European equities are down about 0.50 percent. Furthermore While Asian indexes fall by close to 1%. Ahead of another week of earnings reports, US equity futures are searching for direction.
Markets are pricing in a 98.4% chance that the Federal Reserve will maintain interest rates. At its meeting in November, according to the CME Group’s FedWatch Tool.
Moreover The benchmark US Treasury yield on the 10-year bond is currently trading at 4.98%, not too far. From the multi-year high of 4.99%. The current state of the bond market is one of sellers. With buyers preferring to hold US bonds at higher yields.