US Dollar Index struggles to overstep 104.00 as US Inflation pauses FX domain

The DXY is consolidating below 104.00 as investors demand the release of US inflation for further guidance.
The Fed needs a compelling drop in inflation to shift to a less aggressive stance.
Uncertainty could elevate further if the inflation figures shoot above 8.5%.

Sagar Dua FXStreet

The US dollar index (DXY) is balancing below the round level mark of 104.00 as anxiety over the release of the US inflation has sidelined the market participants. The asset has been oscillating in a range of 102.35-104.20 from April 28 amid the spree of major economic events right from the interest rate decision by the Federal Reserve (Fed) and release of the US Nonfarm Payrolls (NFP) last week to the upcoming Consumer Price Index (CPI) numbers.

US CPI numbers

The US Bureau of Labor Statistics is expected to print the yearly inflation at 8.1%, lower than the former figure of 8.5%, while the core CPI that excludes food and energy is likely to land at 6%. Although inflation print is seen lower, that doesn’t guarantee a trim to the odds of one more jumbo rate hike by the Fed in June. Investors should brace for higher volatility if the yearly inflation shoots above the multi-decade high print of 8.5%.

Fed’s Mester speech

Cleveland Fed President Loretta Mester dictated that the Fed won’t soften its stance towards the interest rates till it finds a compelling slippage in the inflation numbers. Inflation numbers are on the rooftop and the current situation is demanding to firmer tackle to slow down the pace of soaring inflation.

Key events this week: Consumer Price Index (CPI), Initial Jobless Claims, Producers Price Index (PPI) Michigan Consumer Sentiment Index (CSI).

Eminent issues on the back boiler: Russia-Ukraine Peace Talks, China’s CPI, and European Central Bank (ECB) President Christine Lagarde’s speech.,

Dollar Index Spot

Overview
Today last price	103.95
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	103.93

Trends
Daily SMA20	102.14
Daily SMA50	100.13
Daily SMA100	98.07
Daily SMA200	96.12

Levels
Previous Daily High	103.97
Previous Daily Low	103.5
Previous Weekly High	104.07
Previous Weekly Low	102.34
Previous Monthly High	103.94
Previous Monthly Low	98.31
Daily Fibonacci 38.2%	103.79
Daily Fibonacci 61.8%	103.68
Daily Pivot Point S1	103.63
Daily Pivot Point S2	103.33
Daily Pivot Point S3	103.15
Daily Pivot Point R1	104.1
Daily Pivot Point R2	104.28
Daily Pivot Point R3	104.58

Author

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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