Published on May 9, 2023

Daily Analysis For US Doller Index 09-05-2023

US Doller Index Analysis

Economic Events and Scenario for US Doller Index

Economic Events : -

GMT	Event	Impact	Currency
00:01	(United Kingdom) BRC Retail Sales Monitor YoY	High	GBP
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
01:00	(Euro Area) Anniversary of Robert Schumans Declaration	None	EUR
01:00	(Luxembourg) Europe Day	None	EUR
02:30	(Australia) Retail Sales MoM	High	AUD
04:00	(China) Exports YoY	Medium	CNY
04:00	(China) Imports YoY	Medium	CNY
04:00	(China) Balance of Trade	High	CNY
04:35	(Japan) 10-Year JGB Auction	Low	JPY
04:35	(Japan) 6-Month Bill Auction	Low	JPY
07:00	(Lithuania) CPI	Low	EUR
07:00	(Lithuania) Inflation Rate MoM	Low	EUR
07:00	(Lithuania) Inflation Rate YoY	Low	EUR
07:00	(United Kingdom) Halifax House Price Index YoY	Medium	GBP
07:00	(United Kingdom) Halifax House Price Index MoM	Medium	GBP
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Imports	Low	EUR
08:00	(Slovakia) Balance of Trade	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(Euro Area) ECB Lane Speech	Low	EUR
09:40	(Spain) 6-Month Letras Auction	Low	EUR
09:40	(Spain) 12-Month Letras Auction	Low	EUR
10:30	(Germany) 5-Year Bobl Auction	Low	EUR
10:30	(Australia) 2023-24 Federal Budget	Medium	AUD
11:00	(United Kingdom) BBA Mortgage Rate	Low	GBP
11:00	(Ireland) Industrial Production YoY	Low	EUR
11:00	(United States) NFIB Business Optimism Index	Low	USD
13:30	(United States) Fed Jefferson Speech	Medium	USD
13:55	(United States) Redbook YoY	Low	USD
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:00	(United States) IBD/TIPP Economic Optimism	Medium	USD
15:30	(United States) NY Fed Treasury Purchases 0 to 1 yrs	Low	USD
17:05	(United States) Fed Williams Speech	Medium	USD
18:00	(United States) 3-Year Note Auction	Low	USD
18:00	(Euro Area) ECB Schnabel Speech	Low	EUR
21:30	(United States) API Crude Oil Stock Change	Medium	USD

Today's Scenario: - During the early Asian session on Tuesday, the US Dollar Index (DXY) increased to 101.40, extending the previous day's gains. However, the greenback's gauge against six major currencies struggled to maintain the positive momentum due to the market's indecision and a light economic calendar. Despite this, early indications of rising US inflation were observed from the St. Louis Federal Reserve (FRED) data, which showed an increase in the 10-year and 5-year breakeven inflation rates. Meanwhile, US Wholesale Inventories for March came in at 0.0%, lower than the expected and prior 0.1%.

Buy Scenario: - The primary trend for the currency pair is bearish, which began last week after the price broke below 100.740. The direction of the market will be determined by the reaction of traders to the level of 101.353 in early Tuesday trading.

If the price stays above the first resistance level (R1) at 101.53 for a considerable period of time, it would suggest that buyers are gaining momentum. In this scenario, the next targets for the market will be the second resistance level (R2) at 101.66 and the third resistance level (R3) at 101.90. Till we do not advise to buy US Dollar Index.

Sell Scenario: - However, if the price falls below the first resistance level (R1) at 101.53, it would signal that sellers are present. If this creates enough downside momentum, the price could accelerate towards the support cluster at 100.520 – 100.345. Till we do not advise to sell in US Dollar Index

Support and Resistance Level: -