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US Dollar Index Near 100.50 on Hawkish Fed Signals
Confirmed
In Short: The US Dollar Index (DXY) is trading near 100.45 in early European trading hours on Tuesday, driven by hawkish signals from the US Federal Reserve (Fed) indicating more rate hikes this year.
The US Dollar Index (DXY) is trading near 100.45 in early European trading hours on Tuesday, driven by hawkish signals from the US Federal Reserve (Fed) indicating more rate hikes this year.
The DXY has been gaining momentum, with the upper Bollinger band acting as immediate overhead resistance. The Relative Strength Index (RSI) reading near 65 suggests firm positive momentum without yet reaching overbought conditions.
Societe Generale notes that the near-term focus is on upcoming domestic data to determine if it will shift the policy timeline.
Globally, the dollar held its ground on Friday as investors contended with global policymakers ramping up efforts to rein in inflation, and the Bank of Japan delivered a widely expected rate hike, leaving the yen softer.
What this adds
The US Dollar Index's current strength contrasts with its recent rebound from the 0.5 Support Arc within the current Arc Cycle, which previously suggested a target of 99.58.
Background
The US Dollar Index has rebounded from the 0.5 Support Arc within the current Arc Cycle, according to Fxstreet reports. This rebound confirms a bullish reaction and suggests the potential for continued movement toward the next Resistance Arc, with a target of 99.58.
What's confirmed
- The US Dollar Index (DXY) is trading near 100.45 in early European trading hours on Tuesday, driven by hawkish signals from the US Federal Reserve (Fed) indicating more rate hikes this year.
- The DXY has been gaining momentum, with the upper Bollinger band acting as immediate overhead resistance. The Relative Strength Index (RSI) reading near 65 suggests firm positive momentum without yet reaching overbought conditions.
- Societe Generale notes that the near-term focus is on upcoming domestic data to determine if it will shift the policy timeline.
- Globally, the dollar held its ground on Friday as investors contended with global policymakers ramping up efforts to rein in inflation, and the Bank of Japan delivered a widely expected rate hike, leaving the yen softer.
What's still developing
- Know more. ) The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes.
- Traders will closely monitor the developments on potential US-Iran talks at the United Nations General Assembly on Tuesday.
- Price is approaching the upper Bollinger band, while the Relative Strength Index (RSI) at 66.99 is edging into bullish territory but still shy of classical overbought readings, suggesting upside momentum is firm yet not extreme.
- The AUD/USD pair gathers strength to around 0.7205 during the early Asian session on Monday.
- The Australian Dollar (AUD) edges higher against the US Dollar (USD) as China seeks to shore up capital across its financial system.
- Trump said America was making "so much money" that he was able to promise Americans thousands of dollars in the future.
- "Because of our tremendous strength and success economically, I will issue a dividend to every adult citizen in the United States of America for $5,000," Trump said.
- "Very much like a successful company will do a cash distribution to its shareholders." Trump added that the dividend must be spent in the United States of America, saying he doesn't want people going to Canada, China or Germany to spend the money.
- However, Trump also said that it was for every adult citizen "in the United States of America," which could exclude about 2 million expatriates who live abroad but maintain American citizenship.