USD Index is under slight selling stress at 100.30. before the data. The dollar recovers from previous lows at 100.00 mark
USD key Considerations
At 100.30, the dollar index swings between losses and gains.
On Thursday, US yields have made a little effort at a rebound.
Later in the schedule, the Philly Fed Index and Weekly Claims take front spotlight.
When measured by the (DXY) on Thursday, the dollar recovers from previous minimums at the 100.00 level.
USD Index is currently considering input
To date, the index has done a good job of maintaining the trade above the critical 100.00 level in a setting of fluctuating risk appetite trends.
Investors are entering a patience mindset prior of the important FOMC session on July 26. Judging by the remaining uncertain price activity surrounding the index. Which follows a modest bounce in US rates throughout the slope.
While an identical move over the summer appears has lost steam recently. Especially in the aftermath of lower-than-expected US inflation numbers in June. Markets still anticipate the Fed’s decision to raise rates up 25 bps the following week.
Some Barriers for USD
Past the 100.00 barrier on Thursday, the DXY is already encountering a few obstacles to its current gain.
The notion of the Fed would begin raising at the end of the month amid ongoing disinflationary forces. With a presently strong job market remains unchanged for the time being.
This opinion was strengthened by remarks made by Fed Chairman Powell during the June FOMC meeting. During which he described to the July session as “on the spot”. And said that the majority of the Council is ready to begin its tightening drive as quickly as the following month.
Some thoughts & Views
We are of the view that – Along with unemployment claims today, the Philadelphia Fed index & existing home sales figures will also be tracked. Looking forward, the US Initial Jobless Claims & Existing Home Sales will adorn the economic schedule. Whereas the risk triggers will prove essential in determining immediate DXY swings.
As investors begin to focus on the FOMC meeting coming up as an imminent aggressive risk. we have a feeling that the US the dollar can stabilize or possibly inch stronger once more today.
Technical Perspective
The index is currently down 0.05% at 100.23 and has to find support quickly. It will find it at 99.57 mark. Next around 97.68 (week’s bottom March 30). And finally at 95.17 (month’s bottom Feb 10, 2022). The breakthrough of 100.53 (week’s peak of July 19). On the contrary side would pave the way for 102.60 – 55-day SMA & subsequently 103.54 (week’s top of June 30.
