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US Dollar Index finds offers below 104.00, upside remains favored on risk-off impulse

  • The DXY is expected to rebound despite a weak response at the open amid a risk-off impulse.
  • Fed policymakers see 50-bps interest rate hikes both in June and July.
  • In today’s session, Jobless Claims and Home Sales data will remain in focus.

The US dollar index (DXY) is witnessing a steep fall after a flat opening. Struggling to overstep the round-level resistance of 104.00 on Wednesday has weighed pressure on the asset, however, a rebound looks likely. The DXY remained firmer in the previous trading session as the risk-off impulse heightened on soaring inflation worldwide. The European nations came up with ramping up inflation figures as the UK reported a 9.0% annual figure while Eurozone HICP landed at 7.5%. Mounting fears of a recession in Europe amid high inflationary pressures and the inability of the corporates to generate jobs underpinned the DXY.

Philadelphia Fed Bank President Patrick Harker

Federal Reserve (Fed) policymakers are advocating a spree of 50 basis points (bps) interest rate hikes by the Fed this year. Rising inflationary pressures are compelling the Fed to do whatever it takes to bring price stability. Philadelphia Fed Bank President Patrick Harker stated that the Fed should elevate the interest rates by 50 bps in its June and July monetary policy meetings. After that, the Fed should stick to the traditional elevation of 25 bps further.

A light economic calendar this week has left the DXY at the mercy of risk sentiment. Still, the Jobless Claims and Home Sales data will keep investors busy in the New York session.

Key events next week: New Home Sales, Durable Goods Orders, FOMC minutes, Initial Jobless Claims, Gross Domestic Product (GDP), Core Personal Consumption Expenditure (PCE), and Michigan Consumer Sentiment Index (CSI).

Dollar Index Spot

Overview
Today last price103.58
Today Daily Change0.29
Today Daily Change %0.28
Today daily open103.29
 
Trends
Daily SMA20103.06
Daily SMA50100.71
Daily SMA10098.47
Daily SMA20096.41
 
Levels
Previous Daily High104.23
Previous Daily Low103.24
Previous Weekly High105.01
Previous Weekly Low103.38
Previous Monthly High103.94
Previous Monthly Low98.31
Daily Fibonacci 38.2%103.62
Daily Fibonacci 61.8%103.85
Daily Pivot Point S1102.94
Daily Pivot Point S2102.59
Daily Pivot Point S3101.95
Daily Pivot Point R1103.94
Daily Pivot Point R2104.58
Daily Pivot Point R3104.93

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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