DXY: CPI in focus – OCBC
|US Dollar (USD) traded subdued overnight in absence of fresh catalyst. DXY was last seen at 108 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Deceleration in core CPI may weigh on USD
"In the semi-annual testimony to Senate Banking panel overnight, Fed Chair Powell signalled that the Fed was in no rush to cut which had been well priced by markets, hence impact on FX has been rather muted. The impact of Powell’s comment was more felt on gold as a no rush to cut implies high for longer may remain. This also comes timely to keep gold’s rise in check for now."
"Daily momentum and RSI indicators are not showing a clear bias. Sideways trade likely for now. Support at 107.80/90 levels (50 DMA, 23.6% fibo retracement of Oct low to Jan high), 107 levels. Resistance at 108.40 (21 DMA), 110.00/20 levels (previous high)."
"On data, US CPI is top focus tonight (9:30 pm SGT). A deceleration in core CPI may weigh on USD but tariff uncertainty may still imply that USD dips may be shallow. Later tonight, Powell will testify to the House Financial Services committee (11 pm). He is not expected to deviate too much from his recent remarks. Elsewhere, we are also keeping a look out on details with regards to reciprocal tariffs."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.