U.S. Dollar IndexShort
Could the US dollar recover in the short term?
Fundamental analysis
The dollar index fell after weaker-than-expected retail sales figures raised concerns about the strength of the US consumer spending, which was likely hit by harsh weather and wildfires in LA.
Meanwhile, CPI and PPI exceeded forecasts, though the PPI components feeding into the PCE index, the Fed's preferred inflation gauge, showed signs of cooling. The data has reinforced the Fed’s cautious stance on rate cuts, with Chair Powell emphasizing that the central bank is in no hurry to cut interest rates.
On the other hand, Trump proposed new country-specific tariffs. Markets await further details and remain hopeful that negotiations could avoid the taxes.
Technical analysis
DXY extended its decline after the EMA21 and EMA78 crossed to the downside, with the price falling below 107.
The index is approaching the lowest price so far this year, and if it fails to close the daily session above 107, the index could fall to the next support at 106.
The dollar index fell after weaker-than-expected retail sales figures raised concerns about the strength of the US consumer spending, which was likely hit by harsh weather and wildfires in LA.
Meanwhile, CPI and PPI exceeded forecasts, though the PPI components feeding into the PCE index, the Fed's preferred inflation gauge, showed signs of cooling. The data has reinforced the Fed’s cautious stance on rate cuts, with Chair Powell emphasizing that the central bank is in no hurry to cut interest rates.
On the other hand, Trump proposed new country-specific tariffs. Markets await further details and remain hopeful that negotiations could avoid the taxes.
Technical analysis
DXY extended its decline after the EMA21 and EMA78 crossed to the downside, with the price falling below 107.
The index is approaching the lowest price so far this year, and if it fails to close the daily session above 107, the index could fall to the next support at 106.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.