Dollar Index Edges Lower as Investors Gauge Fed Rate Path

U.S. dollar index

U.S. Dollar Index is trading down 0.20% at 103.68

The dollar eased back slightly from a 20-year high reached earlier this month on Monday, following disappointing U.S. economic data that may dampen expectations for aggressive Federal Reserve rate hikes.

As of 02:38 AM EST (0638 GMT), the U.S. dollar index – which measures the greenback against six rival currencies – was down 0.13% at 103.820. The index is trading below a two-decade peak of 105.79 touched on June 15 after the Fed raised borrowing costs by 75 basis points in a bid to curb soaring inflation.

Fears that these Fed actions could trigger a global economic downturn gave support to the greenback and the perceived relative safety of dollar-denominated assets.

But on Friday, the final June reading of the closely-watched University of Michigan consumer sentiment index slumped to a record low, suggesting that Americans are becoming more pessimistic about the economic outlook amid a recent spike in prices. The gloomy mood may lead some investors to re-evaluate their predictions for potential Fed rate rises.

Major currencies in Europe increased against the dollar. GBP/USD rose by 0.12% to $1.2278, while EUR/USD firmed slightly by 0.05% to $1.0559 ahead of a key European Central Bank forum in Portugal this week.

Elsewhere, China’s yuan is holding near the flatline following an announcement by authorities in Shanghai that the city had emerged victorious over a recent COVID-19 outbreak.

On technical fronts U.S. Dollar Index RSI stood at 41.76 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : U.S. Dollar Index – SELL: 103.69, TARGET: 103.34, STOP LOSS : 103.90

About Author

Related posts

Bayer AG

Bayer launches sustainable agriculture hub to connect U.S. farmers, food and fuel makers

Bayer AG (ETR:BAYGN) is trading down 0.92% at 53.60 Agricultural seeds and chemicals maker Bayer AG (ETR:BAYGN)on Monday launched a digital farming platform that it says will help U.S. growers enact environmentally friendly practices and connect them with companies seeking more sustainable food, feed and biofuel ingredients. The effort...

Read More
Dollar Index

Dollar Edges Higher; Sterling Weak After GDP Fall

GBP/USD is trading down 0.53% at 1.2133 The U.S. dollar edged higher in early European trade Friday, rebounding to a degree after a two-day selloff as weaker than expected inflation data prompted a rethink of the Federal Reserve’s likely tightening path. At 02:50 ET (06:50 GMT), the Dollar Index,...

Read More
European markets

European Shares Rise After Soft U.S. Inflation Data

CAC 40 is trading down 0.46% at 6502.80 European markets moved higher on Thursday, boosted by strong gains on Wall Street overnight after weaker-than-expected U.S. inflation eased the pressure on the U.S. Federal Reserve to aggressively tighten monetary policy. As of 04:16 ET (08:16 GMT), the pan-European STOXX 600...

Read More

Leave a Reply