DXY consolidating, but watch out for the next move!!
Anticipate higher volatility in the DXY today with the US Congressional Elections due. However, this news event is unlikely to cause a significant change in the longer-term trend.
As the DXY trades along the 110.35 price level, look for a possible rebound on the DXY. If the DXY trades above the 110.70 price level, the price could continue higher toward the next resistance level of 111.77.
Be prepared for the major news on the horizon, the US CPI y/y data release on Thursday at 9:30pm (GMT+8). It could very likely lead to a stronger USD regardless of the data...
Why?
Because if the CPI is released as expected at 7.9%, this would indicate that the interest rate increases from the Feds are taking effect, spurring confidence for more rate increases.
And if CPI is sticky and still showing above 8%, then the Feds would have to continue increasing rates to combat further inflation growth.
As the DXY trades along the 110.35 price level, look for a possible rebound on the DXY. If the DXY trades above the 110.70 price level, the price could continue higher toward the next resistance level of 111.77.
Be prepared for the major news on the horizon, the US CPI y/y data release on Thursday at 9:30pm (GMT+8). It could very likely lead to a stronger USD regardless of the data...
Why?
Because if the CPI is released as expected at 7.9%, this would indicate that the interest rate increases from the Feds are taking effect, spurring confidence for more rate increases.
And if CPI is sticky and still showing above 8%, then the Feds would have to continue increasing rates to combat further inflation growth.