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    US Dollar Index holds below the 104.00 mark, investors await fresh catalysts

    Source Fxstreet
    Feb 23, 2024 05:17
    • The US Dollar Index (DXY) trades on a weaker note amid the USD weakness. 
    • The US labor market remained robust in February. 
    • The US Q4 GDP growth numbers and the Core Personal Consumption Expenditures Price Index (Core PCE) will be due next week. 

    The US Dollar Index (DXY), a measure of the value of the US Dollar (USD) against a weighted basket of currencies used by US trade partners, drops below the 104.00 mark during the early European trading hours on Friday. DXY trades on a softer note as traders await fresh catalysts on when the Federal Reserve (Fed) will begin cutting interest rates. At press time, DXY is trading at 103.92, losing 0.02% on the day. 

    Early Friday, Fed Governor Christopher Waller said the recent stronger-than-expected inflation data validates the Fed’s Chair Jerome Powell's careful risk management approach, and the central bank is not rushing to begin cutting interest rates, as the Fed wanted to wait longer before having enough confidence that starting rate cuts will keep us on the path to 2% inflation.

    The upbeat Manufacturing PMI and labor data failed to boost the US Dollar Index. The US Department of Labor revealed on Thursday that US Initial Jobless Claims for the week ending February 17 dropped to 201K from the previous week of 213K, while Continuing Claims declined to 1.862M, below the estimation and the previous week.  

    Furthermore, the flash US Manufacturing Purchasing Managers Index (PMI) rose to a 17-month high of 51.5 in February from 50.7 in January, above the market consensus of 50.5. Meanwhile, the Services PMI eased to 51.3 in February versus 52.5 prior, weaker than the projection of 52.00.

    Apart from this, the rising tensions in the Middle East also support the DXY. Houthi rebels launched two missiles at another UK-registered cargo ship in the Gulf of Arden. This comes as the group enhances its military and defense capabilities to continue attacking ships in the Red Sea. Further conflicts in the Middle East might lift the traditional currency, like the Greenback. 

    Next week, market players will focus on the US Gross Domestic Product Annualized for the fourth quarter (Q4), which is projected to remain steady at 3.3%. Also, the Core Personal Consumption Expenditures Price Index (Core PCE) and ISM Manufacturing PMI for February will be due. Traders will take cues from the data and find opportunities around the US Dollar Index. 

     

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    USD Index depreciates on dovish tone surrounding Fed’s rates trajectory, clings to 104.20The US Dollar Index (DXY), which gauges the value of the US Dollar (USD) against the six major currencies, remains in the negative territory for the third successive day, hovering around 104.20 during the Asian trading hours on Thursday.
    Source  Fxstreet
    The US Dollar Index (DXY), which gauges the value of the US Dollar (USD) against the six major currencies, remains in the negative territory for the third successive day, hovering around 104.20 during the Asian trading hours on Thursday.
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    US Dollar trades with mild gains following mid-tier reportsThe US Dollar Index (DXY) is hovering around 104.20, trading with mild gains against its rivals on Tuesday.
    Source  Fxstreet
    The US Dollar Index (DXY) is hovering around 104.20, trading with mild gains against its rivals on Tuesday.
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    Source  Fxstreet
    The US Dollar (USD) has declined at the start of this week.
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