• US Dollar Index takes offers to refresh intraday low, pares Wednesday’s gains.
  • Fed Minutes suggested a slowdown in the rate hike pace.
  • Firmer US data, fears of recession keep buyers hopeful even as yields ease from weekly top.

US Dollar Index (DXY) renews intraday low around 106.50 as it consolidates weekly gains during Thursday’s Asian session. The greenback’s gauge rose notably on Monday and Wednesday amid fears of recession and firmer yields before the Fed Minutes triggered the latest pullback.

Minutes of the latest Federal Open Market Committee (FOMC) showed, per Reuters, that officials were ready to slow the pace of interest rate hikes in tandem with signals of a slowdown in inflation. The news also added, “In their July meeting minutes released on Wednesday, Fed officials said the pace of future rate hikes would depend on incoming economic data, as well as assessments of how the economy was adapting to the higher rates already approved.”

After the Fed Minutes’ release, the US 10-year Treasury yields retreated from the weekly top surrounding 2.90%, down one basis point (bp) to 2.89% by the press time.

In addition to the FOMC Minutes, the hopes of more stimulus from China also seemed to have exerted downside pressure on the US bond coupons, by way of a reduction in the haven demand. “China may issue 1.5 trillion yuan in additional debt as part of an investment push,” mentioned china securities news. However, doubts over China’s ability to overcome recession fears, especially after the covid woes and heat wave, seem to keep the risk aversion on the table.

Also contributing to the sour sentiment could be the latest comments from the US Trade Representative’s office stating that early this autumn, the US and Taiwan will begin formal negotiations on a trade initiative.

The bond coupons earlier rose after the US Retail Sales marked a mostly upbeat figure for July. US Retail Sales flashed 0.0% growth during July, versus 0.1% expected and a downwardly revised 0.8% prior. The Retail Sales Control Group figures, however, rose to 0.8% compared to 0.6% market consensus and 0.7% prior (revised from 0.8%).

On the same line were comments from Federal Reserve Governor Michelle Bowman who mentioned, “High inflation and strong employment will likely create some pressure on labor and employment.”

Looking forward, the weekly prints of the US Initial Jobless Claims and Philadelphia Fed Manufacturing Survey for August could entertain the DXY traders. Above all, recession fears and Fed concerns will be crucial to watch for fresh impulse.

Technical analysis

The double tops around 106.95 direct DXY bears toward retesting the 21-DMA support of 106.20.

Additional important levels

Overview
Today last price 106.56
Today Daily Change -0.07
Today Daily Change % -0.07%
Today daily open 106.63
 
Trends
Daily SMA20 106.22
Daily SMA50 105.83
Daily SMA100 103.81
Daily SMA200 100.18
 
Levels
Previous Daily High 106.89
Previous Daily Low 106.3
Previous Weekly High 106.81
Previous Weekly Low 104.64
Previous Monthly High 109.29
Previous Monthly Low 104.69
Daily Fibonacci 38.2% 106.66
Daily Fibonacci 61.8% 106.52
Daily Pivot Point S1 106.33
Daily Pivot Point S2 106.02
Daily Pivot Point S3 105.74
Daily Pivot Point R1 106.91
Daily Pivot Point R2 107.2
Daily Pivot Point R3 107.5

 

 

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 are attempting to break higher with eyes towards 0.6680

AUD/USD bulls are attempting to break higher with eyes towards 0.6680

AUD/USD bulls are in play as they knock on the doors of a key resistance despite the miss in the Trade Balance. A weaker US dollar in trade on Thursday is giving the commodities a boost. The greenback is correcting the move from Wednesday when the DXY, rallied to 111.735. 

AUD/USD News

EUR/USD extends recovery above 0.9900 as risk-off fades, US NFP in focus

EUR/USD extends recovery above 0.9900 as risk-off fades, US NFP in focus

The EUR/USD pair has crossed the immediate hurdle of 0.9900 confidently and is expected to establish above the same. The risk profile is getting cheerful now as S&P500 has rebounded firmly. Also, yields have cooled somehow as investors are shifting their focus toward the NFP data.

EUR/USD News

Gold aims to extend recovery above $1,720 as focus shifts to US NFP

Gold aims to extend recovery above $1,720 as focus shifts to US NFP

Gold price (XAU/USD) has turned sideways after sensing demand around the critical support of $1,700.00. The precious metal is aiming to cross the $1,720.00 hurdle and will find its next barricade around $1,730.00. 

Gold News

US House Committee turn to DoJ for CBDC development as SWIFT resolves cross-border transfer hurdle

US House Committee turn to DoJ for CBDC development as SWIFT resolves cross-border transfer hurdle

In a letter, the House Financial Services Committee (FSC) asked the Department of Justice (DoJ) for their CBDC assessment. The House Committee analyzed whether the Federal Reserve has the authority to issue a CBDC without authorizing legislation.

Read more

Is the recent S&P 500 rally sustainable?

Is the recent S&P 500 rally sustainable?

Stock investors are all asking the same question... can we trust the recent rally? The market just rallied +5.7% in two trading days. Bulls argue that the rebound could push even higher as the start of Q3 earnings season starts up next week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures