DXY has done a good job of keeping business around 92.00 so far.
In June, consumer confidence in the United States surprised to the positive.
MBA Mortgage Applications, the ADP report, and housing data are the next items on the agenda.
So far on Wednesday, the greenback has alternated gains and losses around the 92.00 area in terms of the US Dollar Index (DXY).
On Tuesday, the dollar finally regained the 92.00 mark, albeit it concluded the session below it as investors respond to quarter-end flows.
Positive results from the Conference Board’s Consumer Confidence Index in June, as well as increasing house prices, added to the robust economic comeback story in the United States and bolstered the outlook for higher inflation.
There was no news from the bond markets, where rates on the key US 10-year note remained sidelined for the time being, hovering around 1.50 percent, always amidst rising caution ahead of crucial US data releases later in the week.
Weekly MBA Mortgage Applications are due first in the US data sector, followed by the ADP report for June, the Chicago PMI, Pending Home Sales, and the EIA’s report on US crude oil supply.
The reclaims the 92.00 area, with the crucial 200-day SMA providing solid support. The possibility that the tapering talk would begin sooner than expected, as well as a possible rate hike in H2 2022, fueled the sharp rise in the dollar following the FOMC meeting to levels last seen in mid-April, while also injecting some uncertainty into the debate over the extension of the “transient” inflation. Higher yields in the shorter end of the curve aided the robust rise in DXY, widening the spread disparity with their German counterparts. In the meanwhile, the dollar’s market movement and attitude will be influenced by continued progress on the economy’s reopening, vaccine rollout, and results from important fundamentals.
This week’s major events in the United States include: MBA Mortgage Applications, ADP Report, Pending Home Sales (Wednesday) – Initial Claim, ISM Manufacturing PMI, Markit’s June final Manufacturing PMI (Thursday) – Nonfarm Payrolls, Unemployment Rate, Balance of Trade, Factory Orders (Wednesday) – Initial Claim, ISM Manufacturing PMI, Markit’s June final Manufacturing PMI (Friday).
Biden’s promises to boost infrastructure and families, valued over $6 trillion, are on the back burner. 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 0.01 percent at 92.08, and a break over 92.40 (June’s monthly high) would lead to 92.46 (23.6 percent Fibo level of the 2020-2021 dip) and finally 93.43. (2021 high Mar.21). On the downside, initial resistance is seen at 91.51 (weekly low June 23), then 91.16 (100-day SMA), and lastly 89.53. (monthly low May 25).
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