US Dollar Index is experiencing stress at 103.00 before of the latest information on minutes from the Federal Reserve
US Dollar and Index Key Considerations
The US dollar Index loses up a few points near the 103.10 level.
This Wednesday, US rates fell off current higher levels.
Subsequently in the day, however, the FOMC Minutes and real estate statistics take central focus.
Dollar Index falls before of the Fed findings.
The Dollar Index, that gauges the value of the US dollar, was 0.1 percent weaker at 102.962. just shy from its 112-month top of 103.46 reached earlier in the week.
The dollar rose on Tuesday with the announcement of better-than-expected July sales at retail in the United States. showing how US consumers are proving to be robust in the face of price inflation. Which has risen in the cost for household necessities like groceries and gasoline.
This adds fire to the discussion about the Fed’s next interest rate decision, with many expecting the US monetary authority to hold on a further rise as it meet again in Sept.
The minutes of the Fed‘s July summit will provide further significant insight into policymakers’ views about where the fed funds rate ought to be later in the day. But investors seem to be eager to head into the publication in an increased neutral stance, thus current dollar sell.
The index looks to have hit a good barrier at -w6eek highs near 103.50 which is strengthened by the proximity of the crucial 200-day SMA 103.23 mark
Meanwhile, the dollar’s several-week solid increase has been supported by a comparable rise in US rates throughout time frames. As well as growing suspicion the Fed would maintain its present tight posture for a longer duration than previously expected.
What to Watch for the US dollar in present situation and conditions
After reaching several-week highs at 103.50 early in the week, the index has returned to the 103.00 zone prior to important data updates on Wednesday.
Meanwhile, robust US dynamics appear to have revived the argument surrounding the Fed’s stricter policy longer time posture.
In reality, aside from risk-taking trends, the US currency may suffer further challenges. Which, in reaction to the Fed’s data specific attitude against the present background of sustained deflation and job market softening.
Technical Perspective & Levels
The index is currently down 0.15 percent at 103.04, with first support around 102.33. Next being 101.74 (on a monthly bottom Aug 4). and finally 100.55 mark. A breakthrough above 103.45 (month’s peak August 14), could, on the reverse side. paving the way to 103.57 level. Which is the weekly top June 30. followed by 104.69 marker.
