US Dollar Index bulls take a breather as Fed’s preferred inflation, US Durable Goods Orders loom


  • US Dollar Index stays pressured around intraday low, snaps two-day uptrend.
  • Sluggish Treasury yields, inactive Asian session allows sellers to sneak in ahead of the key data.
  • Upward revision to US GDP, President Biden’s comments renew hawkish Fed bets.
  • US Core PCE Price Index, Durable Goods Orders for November eyed for clear directions.

US Dollar Index (DXY) remains on the back foot near 104.35 as bulls retreat during early Friday after a two-day winning streak. In doing so, the greenback’s gauge versus the six major currencies portrays the consolidation ahead of the key US data.

In addition to the pre-data anxiety, sluggish US Treasury yields also allow the DXY bulls to take a breather. That said, the US 10-year Treasury yields remain sidelined around the monthly high after recalling the bulls, making rounds to 3.68% by the press time.

Even so, the US Senate’s passage of a $1.7 trillion government funding bill and the latest comments from US President Joe Biden showing readiness to tame inflation keeps DXY bulls hopeful.

That said, the US Dollar Index cheered strong prints of the US economic growth and personal consumption the previous day. US data renewed hawkish expectations from the US Federal Reserve and propelled the US Dollar. To talk about the statistics, the US economy expanded at an annualized rate of 3.2% in the third quarter (Q3), per the final readings of the Gross Domestic Product (GDP), versus 2.9% previous estimates. Further, the Personal Consumption Expenditure (PCE) Prices match 4.3% QoQ estimations during Q3 2022 whereas the Core PCE improved to 4.7% QoQ versus 4.6% market forecasts.

It’s worth noting that the sentiment-positive headlines from China and mixed US data, as well as the Bank of Japan’s (BOJ) moves, previously exerted downside pressure on the DXY.

Amid these plays, S&P 500 Futures print mild losses while tracking the Wall Street benchmarks amid a sluggish Asian session.

Looking forward, the market’s cautious mood may restrict immediate DXY moves ahead of the US Core Personal Consumption Expenditure (PCE) - Price Index, the Federal Reserve’s preferred inflation gauge, as well as Durable Goods Orders, for November.

Forecasts suggest that the US Core PCE Price Index remains unchanged at 0.2% MoM. However, the Annualized forecasts suggest softer figures of 4.7% YoY versus 5.0% previous readings. Further, US Durable Goods Orders could register a contraction of 0.6% in November compared to the previous increase of 1.1% (revised from 1.0%).

Technical analysis

US Dollar Index recovery remains elusive unless the quote remains below a one-month-old descending resistance line, around 104.95 by the press time.

Additional important levels

Overview
Today last price 104.39
Today Daily Change -0.01
Today Daily Change % -0.01%
Today daily open 104.4
 
Trends
Daily SMA20 104.68
Daily SMA50 106.65
Daily SMA100 108.84
Daily SMA200 106.57
 
Levels
Previous Daily High 104.6
Previous Daily Low 103.75
Previous Weekly High 105.25
Previous Weekly Low 103.44
Previous Monthly High 113.15
Previous Monthly Low 105.32
Daily Fibonacci 38.2% 104.28
Daily Fibonacci 61.8% 104.07
Daily Pivot Point S1 103.9
Daily Pivot Point S2 103.4
Daily Pivot Point S3 103.05
Daily Pivot Point R1 104.75
Daily Pivot Point R2 105.1
Daily Pivot Point R3 105.6

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures