- US Dollar Index prints four-day downtrend, renews intraday low of late.
- Fed hawks fail to impress DXY buyers amid talks of February’s 0.25% rate hike, policy pivot.
- Mixed sentiment in the market, China’s Lunar New Year holidays also help contrinu to the previous moves.
- Preliminary readings of January PMIs, US Q4 GDP will be crucial for fresh impulse.
US Dollar Index (DXY) stays depressed for the fourth consecutive day as sellers poke the 101.90 level during early Monday. In doing so, the greenback’s gauge versus the six major currencies portrays the market’s dovish bias for the Federal Reserve (Fed), despite the policymakers’ multiple attempts to convince of their ability to hike rates. Also exerting downside pressure on the DXY could be the cautious optimism in the market, as well as the softer US Treasury bond yields.
The latest comments from the US Federal Reserve (Fed) officials, ahead of a two-week ‘blackout period’ before the Fed meeting, favored further rate hikes and highlighted inflation fears inside the world’s biggest economy. Federal Reserve Governor Christopher Waller was the last from the US central bank speakers to cross the wires as he said, “He favors a 25 basis point rate hike at the upcoming meeting and continued policy tightening beyond that.”
However, the Wall Street Journal (WSJ) states that Federal Reserve officials are preparing to slow interest-rate increases for the second straight meeting and debate how much higher to raise them after gaining more confidence inflation will ease further this year.
The reason could be linked to the recent softer US Retail Sales and regional activity numbers that signaled the “soft landing” in the US.
Elsewhere, hawkish comments from the European Central Bank (ECB) officials and optimism surrounding China also exert downside pressure on the DXY, mainly due to the greenback’s haven appeal.
Amid these plays, the US Treasury bond yields remain depressed around the multi-day low while the stock futures print mild losses after the Wall Street benchmarks closed the week on a negative note.
Moving on, the first readings of January’s Purchasing Managers Indexes (PMI) for the key global economies will precede the US four-quarter (Q4) Gross Domestic Product (GDP) to entertain DXY traders. However, an absence of Fedspeak and Chinese traders may restrict the market moves.
Unless crossing the previous weekly high surrounding 102.90, the DXY is on the way to testing May 2022 low near 101.30.
Additional important levels
|Today last price||101.9|
|Today Daily Change||-0.10|
|Today Daily Change %||-0.10%|
|Today daily open||102|
|Previous Daily High||102.56|
|Previous Daily Low||101.93|
|Previous Weekly High||102.9|
|Previous Weekly Low||101.51|
|Previous Monthly High||106.02|
|Previous Monthly Low||103.39|
|Daily Fibonacci 38.2%||102.17|
|Daily Fibonacci 61.8%||102.32|
|Daily Pivot Point S1||101.77|
|Daily Pivot Point S2||101.54|
|Daily Pivot Point S3||101.15|
|Daily Pivot Point R1||102.39|
|Daily Pivot Point R2||102.78|
|Daily Pivot Point R3||103.01|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.