DOLLAR INDEX is trading up 0.28% at 109.66
The U.S. dollar edged higher Monday, remaining near a 20-year high at the start of a week dominated by a number of central bank meetings, including a crucial Federal Reserve gathering.
At 03:10 ET (07:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% higher to 109.793, not far removed from the two-decade peak of 110.79 reached on Sept. 7 for the first time since mid-2002.
The main focus of attention this week will be on the U.S. Federal Reserve, which is scheduled to start its latest two-day policy-setting meeting on Tuesday.
The hotter-than-expected U.S. consumer prices for August have cemented expectations for another large rate increase at the conclusion of its meeting on Wednesday. A 75-basis-point rate hike is widely expected, but some investors are bracing for a full percentage point hike, and it’s this possibility which is keeping the dollar fully supported.
“We expect a third consecutive 75bp hike,” said analysts at ING, in a note. “High inflation means 100bp is a risk, but inflation expectations and corporate price plans look less threatening and the growth outlook is more uncertain so we don’t see it. Still, a more hawkish message surrounding sticky inflation will see the Fed dots closer reflect the market pricing of a 4.25-4.5% terminal rate.”
The Fed isn’t the only central bank meeting this week – policymakers in the U.K., Switzerland, Norway and Japan will also meet during the week as the global fight against inflation intensifies.
On technical fronts DOLLAR INDEX: RSI stood at 51.60 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:
