April 17, 2024

DXY Currently Stands At 106.00s And It Is Appearing To Be Depressed

The US Dollar Index (DXY) seems to be moving in a very unclear direction. For now, the situation of the US Dollar Index (DXY) is very unclear for the investors to invest money and support the greenback.

DXY Stands at 106.30

The data from the recent forex trading market shows that the DXY currently stands at 106.30. As it is the first half of the trading session, the index is appearing to be on the defensive.

It has become a trend in the past few weeks that the upside consolidation of the DXY currently stands at 107.00. Then it is the downside consolidation for the index that is limited to 105.00.

Cautious Trading of the USD

The value of the dollar is not showing any significant movement. The investors are not investing heavily in the dollar as they are being cautious about the inflation figures that are yet to come out for July.

It is being expected that the figures for inflation may be shared by the Feds on Wednesday. There are talks among experienced economists about the possible rise in the inflation rates.

It is expected that on Wednesday, the inflation rates for the United States may get raised by the Feds by 75 bps. For now, the investors are mainly concerned about the inflation rates that are to be hiked on Wednesday.

It was also suggested that the September meeting of the Feds may be of high significance. However, the investors have completely forgotten about it and its presence in the stock market forecast factors is non-existent.

More Data to Come from the US

Following the NFP data, the investors also await US data from different spaces. These spaces include the IDB/TIPP Economic Optimism Index and the NFIB Business Optimism Index.

The data is to come out before the weekly report is shared by the American Petroleum Institute (API) for US crude oil.

The Expectations for USD

Despite the solid NFP results, the DXY is still under pressure. It is finding it difficult to grow higher after coming close to the 107.00 boundaries.

Although the investors are waiting for the data to come out for the mentioned spaces, still, it is considered that the investors may continue investing in the USD.

While remaining cautious, the investors may resort to investing in the USD before the CPI. It is expected that the upcoming data would be promising for the US as well.

It would allow the Federal Reserve to hike the interest rates with more aggression to counter inflation hikes.

At the moment, the USD is losing momentum, and it is moving down to 106.26. If the index ends up falling below the 106.26 benchmarks, it may drop to 103.45.

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