Published on May 12, 2023

Daily Analysis For US Doller Index 12-05-2023

US Doller Index Analysis

Economic Events and Scenario for US Doller Index

Economic Events : -

GMT	Event	Impact	Currency
04:00	(New Zealand) Business Inflation Expectations	Low	NZD
04:35	(Japan) 3-Month Bill Auction	Low	JPY
06:00	(Finland) Current Account	Low	EUR
07:00	(United Kingdom) Goods Trade Balance	High	GBP
07:00	(United Kingdom) GDP YoY	Low	GBP
07:00	(United Kingdom) Goods Trade Balance Non-EU	High	GBP
07:00	(United Kingdom) Industrial Production MoM	Medium	GBP
07:00	(United Kingdom) Industrial Production YoY	Low	GBP
07:00	(United Kingdom) Manufacturing Production MoM	Medium	GBP
07:00	(United Kingdom) Manufacturing Production YoY	Low	GBP
07:00	(United Kingdom) Construction Output YoY	Low	GBP
07:00	(United Kingdom) Balance of Trade	Low	GBP
07:00	(United Kingdom) GDP Growth Rate YoY	High	GBP
07:00	(United Kingdom) GDP Growth Rate QoQ	High	GBP
07:00	(United Kingdom) Business Investment QoQ	Medium	GBP
07:00	(United Kingdom) Business Investment YoY	Low	GBP
07:00	(United Kingdom) GDP MoM	High	GBP
07:00	(United Kingdom) GDP 3-Month Avg	Medium	GBP
07:00	(United Kingdom) Construction Orders YoY	Low	GBP
07:45	(France) Inflation Rate YoY	Medium	EUR
07:45	(France) Inflation Rate MoM	Medium	EUR
07:45	(France) Harmonised Inflation Rate MoM	Low	EUR
07:45	(France) Harmonised Inflation Rate YoY	Low	EUR
08:00	(China) FDI (YTD) YoY	Medium	CNY
08:00	(Spain) CPI	High	EUR
08:00	(Spain) Core Inflation Rate YoY	Low	EUR
08:00	(Spain) Inflation Rate YoY	Low	EUR
08:00	(Spain) Inflation Rate MoM	Low	EUR
08:00	(Spain) Harmonised Inflation Rate YoY	Low	EUR
08:00	(Spain) Harmonised Inflation Rate MoM	Low	EUR
08:00	(United States) Fed Bowman Speech	Medium	USD
09:00	(Euro Area) ECB Guindos Speech	High	EUR
10:00	(China) Current Account	Medium	CNY
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Current Account	Low	EUR
12:15	(United Kingdom) BoE Pill Speech	Medium	GBP
13:00	(United Kingdom) NIESR Monthly GDP Tracker	Low	GBP
13:30	(United States) Export Prices YoY	Low	USD
13:30	(United States) Import Prices YoY	Low	USD
13:30	(United States) Import Prices MoM	Medium	USD
13:30	(United States) Export Prices MoM	Medium	USD
13:45	(Germany) Current Account	Low	EUR
14:00	(Ecuador) Balance of Trade	Low	USD
15:00	(United States) Michigan Consumer Sentiment	High	USD
15:00	(United States) Michigan Inflation Expectations	Low	USD
15:00	(United States) Michigan Consumer Expectations	Low	USD
15:00	(United States) Michigan 5 Year Inflation Expectations	Low	USD
15:00	(United States) Michigan Current Conditions	Low	USD
15:30	(Canada) Senior Loan Officer Survey	Medium	CAD
17:00	(United States) WASDE Report	Low	USD
18:00	(United States) Baker Hughes Oil Rig Count	Low	USD
18:00	(United States) Baker Hughes Total Rig Count	Low	USD

Today's Scenario: - The US Dollar Index (DXY) is trading higher above the 102.00 level as the bulls of the greenback prepare for the first weekly gain in three. The strength in the US Dollar against major currencies is being driven by the hawkish signals from the Federal Reserve (Fed) and concerns over the US debt ceiling and banking issues, despite mixed US data.

Investors are flocking towards the US Dollar due to fears surrounding the US debt ceiling expiration and potential banking problems. The recent postponement of the debt ceiling talks between US President Joe Biden and House Speaker McCarthy adds to the negative sentiment. The US Treasury Department has already indicated that the federal government is likely to default by June 1 if the debt ceiling is not raised. The upcoming G7 meeting in Japan, which US President Biden is set to attend, further amplifies the significance of this news and its impact on risk appetite.

It is worth noting that the US Dollar Index's movement and market dynamics can be subject to change, and actual price movements may differ from current expectations.

Buy Scenario: - On the upside, a break above the resistance at 102.15, which was the weekly high on May 12, could open the door for further gains. The next resistance level to watch is 102.40, which was the monthly high reached on May 2. If the bullish momentum continues, the index could target the resistance at 102.80, which was the weekly high on April 10.

It's important to note that the movements of the US Dollar Index can be influenced by various factors, including economic data releases, monetary policy decisions, and geopolitical events. Therefore, actual price movements may deviate from the mentioned levels. Till we do not advise to buy US Dollar Index.

Sell Scenario: - Currently, the US Dollar Index (DXY) has declined by 0.08% and is trading at 101.98. It is approaching the next support level at 101.01, which was the weekly low on April 26. If the price breaks below this level, the next support is seen at 100.78, which was the low reached on April 14. Ultimately, the psychological level of 100.00 could come into play as a significant support level. Till we do not advise to sell in US Dollar Index

Support and Resistance Level: -