Last week's US Consumer Price Index (CPI) release of 3% (Forecast: 3.1% Previous: 4%) indicates that inflation growth has slowed significantly, likely due to the compounded effect of aggressive interest rate hikes from the Federal Reserve.
This slowdown in inflation growth has also improved market sentiment that the Fed Funds Rate has reached its peak at 5.25% and the likelihood for further rate hikes has diminished.
With the DXY breaking below the round number level of 100 and reaching a low, last seen in April 2022, further downside can be expected.
However, watch out for the possibility of stronger-than-expected US retail sales data. A sustained rebound is unlikely, with the 100.85 resistance level likely to cap the upside potential.
Confirmation of further downside could be signaled if the price breaks below 99.45, with the price likely to trade toward the next key support level at 97.75.
This slowdown in inflation growth has also improved market sentiment that the Fed Funds Rate has reached its peak at 5.25% and the likelihood for further rate hikes has diminished.
With the DXY breaking below the round number level of 100 and reaching a low, last seen in April 2022, further downside can be expected.
However, watch out for the possibility of stronger-than-expected US retail sales data. A sustained rebound is unlikely, with the 100.85 resistance level likely to cap the upside potential.
Confirmation of further downside could be signaled if the price breaks below 99.45, with the price likely to trade toward the next key support level at 97.75.
Join my mailing list jindaotai.com/joinme
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Join my mailing list jindaotai.com/joinme
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.