Dollar Index flat ahead of Tokyo markets, looking for buyers after recent bounce

  • Dollar flat to start the week following recent bounce.
  • Positive CPI numbers on Thursday could give the Dollar room to breath.

The US Dollar has opened the new week of trading relatively flat against a basket of its major counterparts, currently trading close to the week's opening price of 90.33.

The Greenback has faced selling pressure recently, as equity and bond markets readjust their outlooks to include the inevitability of increasing interest rates in the face of rising inflation in key economies, namely the Americas and the Eurozone.

With the Dollar Index fresh off a recent six-week-straight pummeling against its major peers, buyers will be hoping for a positive bump this week when the US drops a hefty docket of data on Thursday at 13:30 GMT, including month-over-month Retail Sales (excluding automotive) bundled with core CPI data. Market forecasts are widely expecting the numbers to come in flat, so a positive beat on numbers could give the Dollar the push it needs to start retaking some of its recent lost ground.

DXY Technicals

The Dollar Index recently found some support at 88.60, a three-year low for the USD; a collapse from here could easily see the American Dollar collapse below 85.00 over time, while bulls must contend with stacked resistance at 91.30 and 92.70 in the near term.

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 securities. 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 Forex 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.