- The US dollar is merged before a possible penetration of Ukraine.
- Merchants for addresses that can appear from Riyadh this week.
- The US dollar index (DXY) is stuck in the middle of 106 range and is looking for a trend.
The US dollar index (DXY), which tracks the performance of the US dollar (USD) for six major currencies, was not going anywhere on Monday and strengthening losses last week, and trading around 106.80 at the time of writing this report on Monday. The economy in the United States (the United States) is no longer rejected, as retail sales data were released in January in January last week, indicating slower economic growth. All eyes this week will be on Riyadh, in Kingdom of Saudi ArabiaWhere US and Russian officials are scheduled to meet before a meeting between US President Donald Trump and Russian President Vladimir Putin.
the Economic evaluation Very quiet this week in the period before the data of the S&P (PMI) purchasing indicator data on Fri. Although the American bond market is closed due to the Ver -Fire Day holiday, the Federal Reserve (FED) has three politicians lined up to speak on Monday.
Daily Digest Market Movers: The American markets were closed
- The American bond markets are closed on Monday due to the Presidential Day holidays.
- Traders will need to be vigilant for any headlines that come out of Riyadh, where US and Russon officials meet on the side between US President Donald Trump and Russian President Vladimir Putin to agree on a deal with Ukraine.
- At 14:30 GMT, the Federal Reserve in Philadelphia Patrick Harker gives a speech on the economic outlook at the Central Banking Series Conference at the University of the Paham Islands in NASO.
- At 15:20 GMT, the governor of the Federal Reserve, Michelle W. Bowman, made short statements about the economy and banking organization at the American Banking Society Conference (ABA) for community supporters in Phoenix, Arizona.
- Outside this Monday, at 23:00 GMT, Governor Christopher J. And wiring the economic outlook at the macroeconomic workshop in Sydney, Australia.
- The stocks start this week with some small gains and caution. The US futures are trading in green as well.
- The CME Fedwatch tool shows a 46.7 % chance that interest rates remain unchanged at the current levels in June.
- The US returns are traded for 10 years about 4.48 %, and it will remain closed to trading this Monday
Technical analysis
the US dollar The index (DXY) is not expected to go anywhere this Monday with the closure of most American markets due to the president’s day. The main focus will be on the main headlines on Ukraine, where the question will be the type of the deal on the table. Be about to reach false breaks on a peace deal that is reached, with the aftermath, which led to the reaction of the knee tremors and the vision of DXY may gather from there.
On the upper side, the previous support in 107.35 is now turning into fixed resistance. Moreover, SMA should be restored for 55 days at 107.91 before restoring 108.00.
On the negative side, search for 106.52 (April 16, 2024, high), 106.40 (100 days SMA), or even 105.89 (resistance in June 2024) as support levels. Since the RSI momentum in the daily chart shows an area for more negative aspect, SMA for 200 days at 104.93 may be a possible result.
US dollar index: daily chart
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidential presidents, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
2025-02-17 13:17:49