- The DXY has turned extremely bearish as the risk-on impulse has rebounded sharply.
- Investors will keenly watch the release of the FOMC minutes.
- The liquidity absorption program by the Fed has raised recession fears.
The US dollar index (DXY) is looking to extend its losses after violating Tuesday’s low at 101.65 as the soaring market mood has diminished the appeal of the safe-haven assets. The DXY is scaling sharply lower from the past eight trading sessions after failing to hold the 19-year high at 105.00. The weakness in the DXY is backed by the expectations of recession in the US amid an aggressive rate hike cycle.
The market participants are expecting that the Federal Reserve (Fed) has pulled the trigger of recession in the US while containing the inflation mess. The program of liquidity absorption from the market may force the corporate to stick to ultra-filtered investment avenues as the unavailability of dirt-cheap money will result in a restricted investment portfolio.
The show-stopper event on Wednesday will be the release of the Federal Open Market Committee (FOMC) minutes. It will be worth watching the strategic decision-making of Fed policymakers behind the adaptation of the hawkish tone by Fed chair Jerome Powell. Also, the FOMC minutes will provide a clear picture of the economic condition of the US.
Key events this week: Durable Goods Orders, Initial Jobless Claims, Gross Domestic Product (GDP), Core Personal Consumption Expenditure (PCE), and Michigan Consumer Sentiment Index (CSI).
Dollar Index Spot
|Today last price||101.75|
|Today Daily Change||-0.01|
|Today Daily Change %||-0.01|
|Today daily open||101.76|
|Previous Daily High||102.32|
|Previous Daily Low||101.65|
|Previous Weekly High||104.64|
|Previous Weekly Low||102.66|
|Previous Monthly High||103.94|
|Previous Monthly Low||98.31|
|Daily Fibonacci 38.2%||101.9|
|Daily Fibonacci 61.8%||102.06|
|Daily Pivot Point S1||101.5|
|Daily Pivot Point S2||101.24|
|Daily Pivot Point S3||100.83|
|Daily Pivot Point R1||102.17|
|Daily Pivot Point R2||102.58|
|Daily Pivot Point R3||102.83|
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