Fundamental Analysis
By : Masih rezvani_Ph.D
U.S. Dollar Index
The U.S. Dollar Index (DXY) was up by 0.14% yesterday on expectations of a possible policy shift by the Bank of Japan (BOJ).
Possible effects for traders:
The U.S. dollar rose during today's Asian session after the BOJ decided to proceed with its ultra-loose monetary policy. However, the DXY failed to reach 103.00. Today's calendar is rather eventful for the U.S. dollar. Retail Sales and Producer Price Index (PPI) data will be released today/ time according to your GMT / and will likely bring strong volatility for USD and related pairs. In addition, today, several Federal Reserve (Fed) officials will deliver speeches which may clarify the future Fed's steps on monetary policy. The first speech will be given by James Bullard, CEO of the Federal Reserve Bank of St. Louis, and another one will be given at today / time according to your GMT / by Patrick Harker, President of the Federal Reserve Bank of Philadelphia. Fundamentally, the pressure on the DXY appears to be bearish as Fed's tightening campaign is ending since inflation is slowing down. However, the Fed indicated that future changes in interest rates would be data-driven, so any bullish surprises in today's data will likely push the DXY above 103.00.
By : Masih rezvani_Ph.D
U.S. Dollar Index
The U.S. Dollar Index (DXY) was up by 0.14% yesterday on expectations of a possible policy shift by the Bank of Japan (BOJ).
Possible effects for traders:
The U.S. dollar rose during today's Asian session after the BOJ decided to proceed with its ultra-loose monetary policy. However, the DXY failed to reach 103.00. Today's calendar is rather eventful for the U.S. dollar. Retail Sales and Producer Price Index (PPI) data will be released today/ time according to your GMT / and will likely bring strong volatility for USD and related pairs. In addition, today, several Federal Reserve (Fed) officials will deliver speeches which may clarify the future Fed's steps on monetary policy. The first speech will be given by James Bullard, CEO of the Federal Reserve Bank of St. Louis, and another one will be given at today / time according to your GMT / by Patrick Harker, President of the Federal Reserve Bank of Philadelphia. Fundamentally, the pressure on the DXY appears to be bearish as Fed's tightening campaign is ending since inflation is slowing down. However, the Fed indicated that future changes in interest rates would be data-driven, so any bullish surprises in today's data will likely push the DXY above 103.00.