Latest Update: Pressure mounts on the USD Index, which cracks 106.00.

Market Analytics and Technical Considerations

Key Points

• The index retreats after Friday’s gain and is once again at the 106.00 level.
• On Monday, a portion of the gains made are given back by US yields.
• The next item on the agenda is The Dallas Fed Manufacturing Index, in Fedspeak.

When measured by the USD Index, the dollar begins the week on the back foot and retreats to a range below the 106.00 level (DXY).

The USD Index examines risk trends

After Monday’s opening bell in the European markets, the index resumes its downward trend below the 106.00 level.

The dollar does lose ground against the threat, and after a poor start to the week for US rates, the greenback plunges against the Japanese yen. The Chief Powell speech on “Fiscal Situation, Inflation, and the Jobs Market” (Wednesday) and the posting of November’s Payrolls will be the highlights of the next week (Friday).

What to watch out for about US dollar

At the start of the week, the dollar loses control and drops back to the sub-106.00 area. The first drivers for the next week are still being seen as the risk trends and the social upheaval in China.

The likelihood of a slower pace of the Fed’s convolution operation in the short term will likely depend significantly on impending results in US fundamentals, even while hawkish Fedspeak keeps the pivoting story in the freezer.

Key Events

ADP Employment Change, GDP Growth Rate, Goods Trade Balance, Pending Home Sales, Fed Powell, Fed Beige Book, PCE, Initial Unemployed Claims, Personal Income/Spending, Final Manufacturing PMI, ISM Manufacturing, Construction Spending, FHFA House Price Index, Consumer Confidence, Mortgage Applications, ADP Employment Change, Initial Jobless Claims, Personal Income/Spending, Final Manufacturing PMI, ISM Manufacturing, Construction Spending, Nonfarm Payrolls, Rate Of unemployment, Thursday (Friday).

Significant problems with the rear boiler: Firm, Gentle, or Slightly soft? the recovery of the US economy. Future rate increases by the Federal Reserve versus predictions of a recession in the coming months. Fed’s reversal. Political bubbles in relation to China and Russia. US-China trade tensions are ongoing.

Relevant USD Index levels

The index is currently down 0.34 percent at 105.69, and a break of 105.36 (the 200-day SMA) would allow more declines to 105.34 (the month’s low from November 15) and then 104.63. (monthly low August 10). On the other side, the first point of resistance appears at 107.99 (weekly high November 21), then 109.13 (100-day SMA), and finally 110.44. (55-day SMA).

Technical Analysis Summary