HFM information and reviews
Octa information and reviews
FXCC information and reviews
FxPro information and reviews
FBS information and reviews
Vantage information and reviews

USD Index turns positive above 103.00, focuses on Powell, data

10 January 2023

The index alternates gains with losses and retakes the 103.00 barrier. US yields trade in a mixed fashion across the curve on Tuesday. Chief Powell speaks later at an event in Sweden. The USD Index (DXY), which tracks the greenback vs. a basket of its main rival currencies, regains the smile and looks to extend the advance past the 103.00 barrier on turnaround Tuesday.

USD index looks at Powell, risk trends

Following two strong daily pullbacks, the index attempts to regain some upside traction and reclaim the area above 103.00 the figure in a more convincing fashion. The so far small bullish attempt in the greenback is accompanied by marginal price action in US yields across the curve amidst some prudence ahead of the participation of Fed’s J.Powell at an event in Sweden on “Central Bank Independence”.

In the US data space, the NFIB Business Optimism Index, the IBD/TIPP Economic Optimism Index and monthly figure of Wholesale Inventories are all due later during the NA trading hours.

What to look for around USD

Despite the ongoing little recovery, the dollar remains under pressure in the 103.00 region amidst investors’ broad-based preference for the risk-associated galaxy. The mixed results from the US Nonfarm Payrolls for the month of December (Friday) seem to have reignited the idea of a probable pivot in the Fed’s policy in the next months, which comes in contrast to the message from the latest FOMC Minutes, where the Committee advocated the need to remain within a restrictive stance for longer, at the time when it ruled out any interest rate reduction for the current year.

Furthermore, the tight labour market, still elevated inflation and the resilient economy are also seen supportive of the firm message from the Federal Reserve and its hiking cycle.

Key events in the US this week: Wholesale Inventories, Fed’s Powell (Tuesday) – MBA Mortgage Applications (Wednesday) – Inflation Rate, Initial Jobless Claims, Monthly Budget Statement (Thursday) – Flash Michigan Consumer Sentiment (Friday). Eminent issues on the back boiler: Hard/soft/softish? landing of the US economy. Prospects for further rate hikes by the Federal Reserve vs. speculation of a recession in the next months. Fed’s pivot. Geopolitical effervescence vs. Russia and China. US-China trade conflict.

USD Index relevant levels

Now, the index is gaining 0.12% at 103.29 and the next up barrier comes at 105.63 (monthly high January 6) followed by 106.35 (200-day SMA) and then 107.19 (weekly high November 30). On the flip side, the breach of 102.94 (monthly low January 9) would open the door to 101.29 (monthly low May 30) and finally 100.00 (psychological level).


Share: Tweet this or Share on Facebook


Bitcoin and Ether in area of light resistance
Bitcoin and Ether in area of light resistance

The crypto market capitalisation reached $1.99 trillion, according to CoinMarketCap estimates, an increase of over 10% in one week. Forbes estimates that the $2 trillion mark was reached last week.

19 Feb 2024

Crypto Market Takes a Breather Amidst the Storm: A Detailed Analysis
Crypto Market Takes a Breather Amidst the Storm: A Detailed Analysis

The Crypto Market Displays Stability with Bitcoin Around $40K: In the midst of the ever-volatile cryptocurrency landscape, the last 24 hours have provided a moment of respite as the market capitalization hovers...

25 Jan 2024

WTI Crude Futures Eye Critical 61.8% Fibonacci Level in Upward Surge
WTI Crude Futures Eye Critical 61.8% Fibonacci Level in Upward Surge

WTI Futures Break Above Key Resistance, Eyeing Fibonacci Milestone: Positive Momentum Indicators Suggest Potential for Further Gains. West Texas Intermediate (WTI) oil futures...

25 Jan 2024

Dollar Buyers Gain Strength Amid Key Economic Data Releases
Dollar Buyers Gain Strength Amid Key Economic Data Releases

The US dollar index, currently positioned at 103.25, is poised for potential growth as the market anticipates important economic data releases. Today's focus is on the January...

24 Jan 2024

Netflix Stock Holds Steady in Bullish Territory as Market Anticipates Q4 Earnings
Netflix Stock Holds Steady in Bullish Territory as Market Anticipates Q4 Earnings

Netflix's stock performance continues to exhibit a neutral stance as investors and analysts eagerly anticipate the release of the company's Q4 earnings after the market closes...

23 Jan 2024

Bitcoin Price Forecast for 2024 and Beyond: Analyzing Future Possibilities
Bitcoin Price Forecast for 2024 and Beyond: Analyzing Future Possibilities

Bitcoin, the pioneering decentralized cryptocurrency, has the potential to reshape the global financial landscape by challenging traditional fiat currencies...

22 Jan 2024

Editors' Picks

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

The Impact of EAs on Forex Trading: A Double-Edged Sword

By enabling continuous, algorithm-based trading, EAs contribute to the efficiency of the Forex market. They can instantly react to market movements and news events, providing liquidity and stabilizing currency prices through their high-volume trading activities.

MultiBank Group information and reviews
MultiBank Group
XM information and reviews
FP Markets information and reviews
FP Markets
FXTM information and reviews
AMarkets information and reviews
BlackBull information and reviews

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.