US Dollar Index aims an establishment above 105.00 as Fed rate hike ghost returns


  • The DXY is hoping for a break above 105.20 on advancing hawkish Fed bets.
  • Investors are ignoring the one-time slowdown in the US Inflation rate.
  • A higher US Michigan CSI will strengthen the DXY bulls further.

The US dollar index (DXY) extended its gains to near 105.20 after sensing an intense buying interest while revisiting the six-week low at 104.64. The asset defended itself from refreshing a six-week low below 104.64. Now, the DXY has turned sideways but remains above 105.00 and is expected to record more gains on violating the immediate hurdle of 105.20.

Inflation exhaustion signals fade

Markets were cheering a downward shift in the US Consumer Price Index (CPI), which landed at 8.5% lower than the expectations of 8.7% and the prior release of 9.1%. Now, investors have started focusing on the extent of the interest rate hike by the Federal Reserve (Fed) in its September monetary policy meeting.

A one-time slowdown in the US inflation is not sufficient to have a ball as price pressures are still extremely deviated from the desired levels. Therefore, the Fed will continue on its path of accelerating interest rates. For the record, the extent of hawkish guidance will trim abruptly.

US Michigan CSI eyed

The Michigan Consumer Sentiment Index (CSI) data is expected to improve to 52.2 from the prior release of 51.5. A consecutive improvement is expected in the confidence of consumers after the data slipped to 50 for the first time in the past 20 years. An occurrence of the same will display that consumers have started showing their confidence in the economy and the overall demand will improve going forward.

Dollar Index Spot

Overview
Today last price 105.12
Today Daily Change 0.01
Today Daily Change % 0.01
Today daily open 105.11
 
Trends
Daily SMA20 106.5
Daily SMA50 105.5
Daily SMA100 103.51
Daily SMA200 99.93
 
Levels
Previous Daily High 105.46
Previous Daily Low 104.64
Previous Weekly High 107.43
Previous Weekly Low 105.54
Previous Monthly High 109.29
Previous Monthly Low 104.69
Daily Fibonacci 38.2% 104.95
Daily Fibonacci 61.8% 105.15
Daily Pivot Point S1 104.68
Daily Pivot Point S2 104.25
Daily Pivot Point S3 103.86
Daily Pivot Point R1 105.5
Daily Pivot Point R2 105.89
Daily Pivot Point R3 106.32

 

 

 

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

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.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Bulls take on the bears in key correction territory

AUD/USD: Bulls take on the bears in key correction territory

AUD/USD bears are lurking but bulls may not be done yet. The Aussie pair rallied in a correction on Wednesday and there could be more to come should the markets continue to offload long positions of the greenback into the fixes and month end this week.

AUD/USD News

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.

EUR/USD News

Gold corrects below $1,660, upside looks likely ahead of US GDP data

Gold corrects below $1,660, upside looks likely ahead of US GDP data

Gold price is displaying a time correction move in Asia after a juggernaut rally from $1,620.00. The precious metal is declining gradually after failing to sustain above $1,660.00. However, the upside remains favored in a cheerful market mood.

Gold News

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price has remained neutral despite the blockchain undergoing a massive upgrade this week via the Vasil hard fork. This update is multi-faceted and brings a host of improvements to the so-called “Ethereum-killer”, including transaction throughput.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more

Forex MAJORS

Cryptocurrencies

Signatures