In the 92.20/30 area, DXY trades with no distinct direction.
The focus of the markets is on the announcement of June CPI on Tuesday.
Powell’s testimony will take center stage later this week.
On Tuesday’s turnaround, the greenback has traded gains and losses in the low-92.00s, according to the US Dollar Index (DXY).
The index is expected to extend its gains from Monday, while investors are wary ahead of the release of the CPI’s June inflation statistics later in the afternoon.
The recent rise in US 10-year yields to about 1.40 percent appears to have given the recent rally in the dollar more legs, even amidst the muted performance in volatility (measured by the VIX, dubbed “the panic index”) and the broad-based rangebound trend in global markets.
Aside from the June CPI, the NFIB Business Optimism Index, a 30-year bond auction, and the API’s monthly report on crude oil inventories are also on the US agenda.
The recovery in DXY clinched fresh highs at 92.90 before easing back to the 92.00 area at the close of the week. The most recent FOMC Minutes revealed early tapering discussions, a positive assessment of the pace of the US recovery, and suggestions that high inflation may endure longer than previously thought, all of which contributed to the dollar’s enhanced sentiment. The new Payrolls data, on the other hand, seem to reinforce the Federal Reserve’s patient posture and could temper a more significant rise in the currency.
This week’s major events in the United States include: Initial Claims, Powell’s Semiannual testimony, June CPI (Tuesday), Fed’s Beige Book (Wednesday), Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony, Powell’s Semiannual testimony July Consumer Sentiment, Philly Fed Index, Industrial Production (Thursday) – Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales, Retail Sales (Friday).
On the back boiler, there are a number of important considerations to consider: Biden’s multibillion-dollar infrastructure and family-support proposal. Under Biden’s administration, there was a trade war between the United States and China. Speculation tapering vs. economic recovery Real interest rates in the United States vs. Europe. Is it possible that the US fiscal stimulus will cause the economy to overheat?
The index is currently up 0.07 percent at 92.28, with a breakout of 92.84 (July’s monthly high) opening the way to 93.00 (round level) and eventually 93.43. (2021 high Mar.21). The next level of support, on the other side, is 91.51 (weekly low June 23), followed by 91.38 (200-day SMA), and lastly 89.53. (monthly low May 25)./n
