US Dollar Index remains capped below 105.00, focus on US data, Fed’s Powell speech

The US Dollar Index (DXY) loses ground around 104.75 after retracing from the weekly top of 105.10 on Wednesday.
Fed’s Mester said she expects rate cuts this year but ruled out the next policy meeting in May.
The US February JOLTS Job Openings rose to 8.756M in February against 8.748M prior, better than estimated.
Investors await the Fed’s Powell speech for fresh catalysts.

Lallalit Srijandorn FXStreet

The US Dollar Index (DXY) trades in negative territory for the second consecutive day near 104.75 during the early European session on Wednesday. The DXY has retreated from the weekly top of 105.10 following the dovish comments from Federal Reserve (Fed) policymakers on Tuesday. The attention will shift to the US ADP Employment Change and the ISM Services PMI, due on Wednesday.

On Tuesday, Cleveland Fed President Loretta Mester said that she expects the US central bank to cut rates this year. Mester noted that the June policy meeting is possible if the data allows it. Meanwhile, San Francisco Fed President Mary Daly stated that three rate cuts this year are a “very reasonable baseline”. However, she acknowledged that the labor market remains strong and growth is continuing. So there's no urgency to adjust the rate. Financial markets are now pricing in about a 65% odds of a rate cut by June, down from about 70% after the Fed's March meeting, according to the CME FedWatch Tool.

Data released from the US Bureau of Labor Statistics on Tuesday showed that February JOLTS Job Openings rose to 8.756M in February from a downwardly revised 8.748M in the previous month, better than market expectations. Additionally, Factory Orders improved to 1.4% MoM in February from a 3.8% decline in the previous reading.

On the other hand, the rising geopolitical tensions in the Middle East and Russia-Ukraine might boost safe-haven assets, benefiting the US Dollar. On Monday, warplanes attacked a building inside Iran's consulate complex in Syria, and some of the most senior members of Iran's Revolutionary Guard were killed. Additionally, there are reports of new attacks on commercial ships in the Red Sea.

Investors will also monitor the Fed’s Powell speech later on Wednesday, which might offer some hints about the monetary policy and interest rate outlook. In case Fed’s Powell delivers some hawkish comments, this could lift the Greenback against its rivals in the near term.

Dollar Index Spot

Overview
Today last price	104.75
Today Daily Change	-0.02
Today Daily Change %	-0.02
Today daily open	104.77

Trends
Daily SMA20	103.76
Daily SMA50	103.87
Daily SMA100	103.37
Daily SMA200	103.77

Levels
Previous Daily High	105.1
Previous Daily Low	104.68
Previous Weekly High	104.73
Previous Weekly Low	104.01
Previous Monthly High	104.73
Previous Monthly Low	102.35
Daily Fibonacci 38.2%	104.84
Daily Fibonacci 61.8%	104.94
Daily Pivot Point S1	104.6
Daily Pivot Point S2	104.43
Daily Pivot Point S3	104.17
Daily Pivot Point R1	105.02
Daily Pivot Point R2	105.27
Daily Pivot Point R3	105.44

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.