US Dollar Index skids to near 104.00 on lower forecasts of the US Durable Goods Orders


  • The DXY has started the week on a weak note ahead of the downbeat US economic data.
  • Weak US economic data may restrict the fed to sound hawkish extremely.
  • Fed policymaker Mary Daly has supported on more 75 bps rate hike for July.

The US dollar index (DXY) is declining firmly in the Asian session as investors are dumping the asset on expectations of a poor performance from the US economic data. The DXY has slipped to near 104.00 after a sheer downside move right from the initial tick of the trading session and is expected to drop further after an establishment below the same.

Lower estimates for the US Durable Goods Orders

Last week’s underperformance from the US Purchase Managers Index (PMI) is expected to be carry-forwarded to the US Durable Goods Orders data. A preliminary estimate for the economic data is 0.1% vs. the former figure of 0.5%.  It won’t be wrong to state that mounting price pressures and Federal Reserve (Fed)’s inability to bring even a minute impact on the former have started affecting the overall demand structure. This will leave less room for the Fed to tighten its policy rates further.

Fed’s Daly support one more 75 bps rate hike

San Francisco Fed President Mary Daly is supporting one more 75 basis points (bps) rate hike by the Fed in its July monetary policy meeting. Considering the soaring price pressures, the Fed needs to display some quick responses and follow a consecutive bumper rate hike announcement. The inflation rate has reached to a four-decade high of 8.6% on an annual basis.

Key data this week: Durable Goods Orders, Pending Home Sales, Consumer Confidence, Gross Domestic Product (GDP), Core Personal Consumer Expenditure (PCE), ISM Manufacturing PMI.

Major events this week:  European Central Bank (ECB) Lagarde speech, Fed chair Jerome Powell’s speech, OPEC meeting.

Dollar Index Spot

Overview
Today last price 104.03
Today Daily Change -0.08
Today Daily Change % -0.08
Today daily open 104.11
 
Trends
Daily SMA20 103.5
Daily SMA50 103.04
Daily SMA100 100.51
Daily SMA200 97.87
 
Levels
Previous Daily High 104.51
Previous Daily Low 103.95
Previous Weekly High 104.95
Previous Weekly Low 103.86
Previous Monthly High 105.01
Previous Monthly Low 101.3
Daily Fibonacci 38.2% 104.17
Daily Fibonacci 61.8% 104.3
Daily Pivot Point S1 103.87
Daily Pivot Point S2 103.63
Daily Pivot Point S3 103.31
Daily Pivot Point R1 104.43
Daily Pivot Point R2 104.75
Daily Pivot Point R3 104.99

 

 

 

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 losses momentum and trades around 0.6950

AUD/USD losses momentum and trades around 0.6950

AUD/USD eased in the American session to settle at the lower end of its Tuesday range. Lingering Chinese and US inflation figures sent investors to the sidelines. Eyes on equities and government bond yields.

AUD/USD News

EURUSD returns 1.0200 as the market mood sours

EURUSD returns 1.0200 as the market mood sours

The EUR/USD pair is battling to hold above the 1.0200 mark, undermined by a souring market mood. The European energy crisis adds to the poor performance of the shared currency.

EUR/USD News

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold kept rallying on Tuesday, hitting a fresh one-month high. The greenback remained weak throughout the first half of the day, recovering some ground after Wall Street’s opening amid the poor tone of US indexes.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures