USD Index Today - The Greenback seems poised to continue its strong recovery, nearing the key resistance level at 106.00, as indicated by the USD Index (DXY) on Friday.
 
The USD Index is attempting to break through the 106.00 level soon.
 
The index continues to build stronger momentum, extending its weekly bounce towards the 106.00 resistance level.
 
In fact, the positive sentiment for the dollar appears to be supported by Chairman Powell's cautious stance during his Q&A session on Thursday.
 
Indeed, Chairman Powell indicated that the Federal Reserve does not intend to raise its benchmark interest rate further, citing a gradual slowdown in inflationary pressure. While participating in a panel discussion, he was reluctant to rule out the possibility of another rate hike to help bring inflation down to the Fed’s target of 2%. Powell also emphasized that there is skepticism about whether the Fed's benchmark rate is high enough to consistently bring inflation down to 2%.
 
In the U.S. economic calendar, the main focus will be on the release of the preliminary Michigan Consumer Sentiment for November, along with speeches from Fed Dallas's L. Logan (voter, hawk) and Fed Atlanta's R. Bostic (2024 voter, centrist).
 
Key Points on USD
 
The index seems to struggle to surpass the 106.00 mark towards the end of the week, following a multi-session recovery that began from its low below 105.00 on November 6.
 
Meanwhile, the dollar’s value is declining despite overall robust U.S. economic conditions and inflation remaining above the Fed’s target. Further declines in the U.S. labor market appear to support the ongoing stalemate in the Fed's current restrictive policies.
 
Key events in the U.S. this week include the release of the Michigan Consumer Sentiment on Friday. Several key issues include the ongoing debate over the soft or hard landing for the U.S. economy, speculation about rate cuts in early 2024, geopolitical tensions involving Russia and China, and the potential spread of the crisis in the Middle East to other regions.
 
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Relevant Levels for USD Index
 
Currently, the index is up 0.01% at 105.90. If it breaks through 106.88 (weekly high on October 26), it could open the way to 107.34 (high on October 3, 2023) and 107.99 (weekly high on November 21, 2022). On the downside, initial support is seen at 104.84 (monthly low on November 6), followed by 104.42 (weekly low on September 11) and 103.59 (200-day SMA).
 
Warning!
 
This analysis is based on fundamental and technical perspectives from reliable sources and does not constitute advice or solicitation. Always remember that the content aims to enrich readers' information. Always conduct independent research on other forex information for use as a reference in your trading.
 
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