USD Index is hovering around 102.60 prior to important data. The index’s bull streak is losing steam close to 102.80.
USD Index is concerned with statistics.
The USD index is trading under the 103.00 level, despite a modest rebound in US yields and a general lack of direction in global markets. Meanwhile, opinions among market players remain strong that the Fed will leave rates steady in May. Which appears to have removed a bit of strength from the greenback recently.
USD Watch List Parameters
The index’s weekly recovery looks to have peaked, as it battles to re-enter the key 103.00 area.
At this point, talk about a possible Fed pivot in the near term that should continue to drag on the dollar. Despite the fact that still higher prices, the resilience of the US economy, and Fed officials are all seen as working against this outlook
This week’s major events in the US include The final quarter GDP growth rate and initial jobless claims. PCE, personal income & spending. And the official Michigan Consumer Sentiment Index on Friday.
Important problems concerning the back boiler:
The argument over whether the US economy will have a soft or hard impact continues. The terminal interest rate is nearing its apex, despite rumors of a reduction in 2024. The Fed’s shift. Geopolitical effervescence in relation to Russia and China. The trade war between the United States and China.
Concerns about the banking industry have shifted traders’ attention to the Fed’s struggle against inflation.
The Fed’s preferred inflation measure, the core PCE price index, is due on Friday. But initially relates to the release of weekly jobless claims data and preliminary fourth-quarter growth facts Giving additional clues about economic activity in the world’s biggest economy.
Based on the CME FedWatch tool, markets are presently factoring in a 60 percent likelihood of the Fed holding interest rates steady in May. But that figure was far greater this past week during the financial crisis.
Relevant USD Index values and Perspective
The index is currently up 0.01% at 102.65, with the next resistance mark at 103.37 (55-day SMA). Subsequent to 104.10 (100-day SMA), and finally 105.88. (2023 high March 8). The break of 101.93 (on a monthly bottom, on the contrary, paves the way to 100.82 (2023 bottom Feb2) and, ultimately, 100.00. (psychological) mark.
