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The US dollar index price moved sideways on Monday morning as investors position for the upcoming economic data and Federal Reserve interest rate decision. The DXY index was trading at $101.87, which was slightly above last month’s low of $100.77. For example, the DXY index will react to the upcoming interest rate decision by the European Central Bank .
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. It should be noted, however, that Federal Reserve’s dovish rate hike poured dxy tradingview cold water on the face of DXY optimists in the last week. US CPI for April, survey on US banking lending practises and current conditions will be eyed for clear directions. You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1. Fed Fund futures suggest US interest rates will be cut by 75bps by the end of 2023.
Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements. Gold price continues to fluctuate slightly above $2,020 on Monday as market action remains choppy ahead of Wednesday’s key US inflation data. Although the 10-year US T-bond yield clings to recovery gains near 3.5%, the cautious market mood helps XAU/USD hold its ground. “With respect to the looming April CPI release, the consensus expects that headline CPI rose 0.4% m/m with core up 0.3% m/m. For what it’s worth, the Cleveland Fed’s inflation Nowcast estimates April headline inflation rose 0.6% m/m with core up 0.5% m/m.
Additional important levels
Looming fears of US debt ceiling expiration, banking crisis put a floor under US Dollar price. @GPottabathni DXY Index The weekly charts for DXY show that the correction may continue till 99. The weekly charts for DXY show that the correction may continue till 99. Therefore, there is a likelihood that the Federal Reserve will take a balanced tone in the coming meeting. Expectations are that the Fed will hike interest rates by 0.25% and then take a strategic pause. The alternative is where the bank decides to leave interest rates unchanged.
This is notable since the euro is the biggest US dollar index constituent. Recommended by Nick Cawley Traits of Successful Traders Get My GuideRisk sentiment is currently giving the US dollar a supportive hand as contagion fears in the US Regional Banking sector grow. The latest banks in the spotlight, PacWest Bancorp and Western Alliance Bancorp slumped by 50% and 38% respectively yesterday as worries over another round of deposit outflows escalated. Other safe-haven assets, including gold and the Japanese Yen have also been in demand. Intraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET.
Short term bearish In daily TF, the price structure shows the beginning of a correction after a rise of about 28% , confirmed by a triple top of DXY, a MACD triple top and a bearish divergence of RSI. In monthly TF, we have a strong uptrend due to a huge bullish divergence and a triple bottom. In daily TF, the price structure shows the beginning of a correction after a rise of about 28% , confirmed by a triple top of DXY, a MACD triple top and a bearish divergence of RSI.
The biggest catalyst for the US dollar will be the interest rate decision by the Federal Reserve. This will be an important decision because of the state of the economy. Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. DOLLAR OUTLOOK FOR THE NEXT 3 MONTHS I have noticed a bearish rally is approaching on DOLLAR and economic news seem to be the driven force.. I have noticed a bearish rally is approaching on DOLLAR and economic news seem to be the driven force..
US DOLLAR CURRENCY INDEX
Friday’s US NFP came in firmer but revisions disappointed DXY bulls; Fed’s Bullard backs more rate hikes. At the same time, there are concerns about the banking sector. For example, First Republic Bank is on the verge of collapse while the problems in the commercial real estate sector are becoming clear. The Federal Reserve will deliver its interest rate decision this week. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Further, the Unemployment Rate also eased to 3.4% versus 3.5% market forecasts and the previous mark whereas Average Hourly Earnings improved to 4.4% YoY from 4.3% prior and analysts’ estimations of 4.2%. Usdinrusd is going weaker this time, usd can run in this path as tripple top has done here and an upcoming head and shoulder will creat. Usd is going weaker this time, usd can run in this path as tripple top has done here and an upcoming head and shoulder will creat. Looking to capitalise on rising & falling USD, GBP, EUR rates? Trade forex in minutes with our top-rated broker, eToro. Therefore, there is a likelihood that the US dollar index sell-off is ending.
Were going to leave this one here nothing could change what’s gonna happen to dollar, since new order is coming, dollar reserve from 80% is dropping to 60% according to data, it seems everything is on tract for new leader. There is a thread running between the three crises being felt in the US right now. The inflation crisis was borne from the pandemic, a politically toxic one. The looming debt ceiling crisis stems from politicking that is more aggravated than ever. DXY failed to cheer the upbeat US employment report for Friday as the higher prints of Nonfarm Payrolls failed to divert the market’s attention from downwardly revised prior readings. That said, the US Bureau of Labor Statistics unveiled a jump in the headline Nonfarm Payrolls by 253K expected and revised down prior readings of 165K.
Gold prices post a modest climb, but hold below $2,000 an ounce after U.S. GDP data
If the April inflation data are strong, then there is a growing probability that the FOMC will have to revise up its end 2023 inflation forecasts,” said ANZ. Binance Coin price is having a manic Monday as traders are clearly not fans of The Bangles’ song. Price action in BNB slid lower in ASIA PAC trading right after Binance Holding lifted its ban on crypto withdrawals in Bitcoin. Amid these plays, Wall Street closed positive and the US Treasury bond yields recovered on Friday. However, the bond coupons remain depressed and exert downside pressure on the US Dollar Index ahead of the key week comprising the US inflation data for April. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
- DXYUSD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU.
- Fed Fund futures suggest US interest rates will be cut by 75bps by the end of 2023.
- Recommended by Nick Cawley Traits of Successful Traders Get My GuideRisk sentiment is currently giving the US dollar a supportive hand as contagion fears in the US Regional Banking sector grow.
- In monthly TF, we have a strong uptrend due to a huge bullish divergence and a triple bottom.
- For example, the DXY index will react to the upcoming interest rate decision by the European Central Bank .
The US dollar index has drifted upwards in the past few days. DXYUSD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU. USD index is supposed to continue it’s downtrend and we have sharp uptrend in XAU.
Gold inches closer to a record high, buoyed by recession fears and weaker U.S. dollar
It has now moved slightly above the descending trendline shown in green. The index has moved above the 25-day and 50-day moving averages. It has also formed an inverted head and shoulders pattern. The US dollar index will also react to the upcoming US non-farm payrolls data scheduled for Friday. Economists expect the data to show that the economy added over 185k in March while the unemployment rate remained at 3.5%. The DXY index will be in the spotlight this week ahead of key events this week.
If this happens, the next key level to watch will be at $102.78, the highest point on April 10. Data published last week showed that the country’s economic growth slowed in the first quarter. Other numbers have shown that retail sales have https://1investing.in/ dropped as inflation remains stubbornly high. The unemployment rate has remained close to a multi-decade low. Take your analysis to the next level with our full suite of features, known and used by millions throughout the trading world.
Nvidia and 4 More Stocks That Can Benefit From a Falling Dollar
We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Rates are seen unchanged at the next meeting and then cut by 25bps at three out of the four remaining meetings this year. In addition to further 25bp cuts next year, current market pricing is showing a more aggressive 50bp cut at the meeting next March. While these probabilities constantly change, the current outlook suggests lower rates for longer going forward. The 4H chart shows that the DXY index bottomed at $100.83 in April.