The Dollar Index (DXY)
Key news events today
USD Core PCE Price Index
What can we expect from DXY today?
Overnight, the USD GDP was released slightly lower than expected at 2.7% (Forecast: 2.9%). This saw the DXY spike down briefly but the price bounced strongly off the 104.40 price area to continue its upward momentum. As the DXY breaks above 104.55, look for the uptrend to continue. Look towards the Core PCE price index to be released today (Forecast: 0.4% Previous: 0.3%) to signal slightly faster than anticipated inflation growth. This could be indicative that further interest rate hikes would be required from the Federal Reserve, which could see the DXY trade higher, toward the next key resistance level of 105.50.
Central Bank Notes:
Federal Reserve hiked rates by 25bps taking interest rates to 4.75%
Next meeting is on 23 March 2023
Ongoing rate increases will be expected
Next 24 Hours Bias
Weak Bullish
