- The edges of the US dollar are slightly higher on Wednesday, not any major moves.
- US President Donald Trump adds medicines and semi -conductors to the tariff family.
- The US dollar index (DXY) is above 107.00 and is still looking for the trend this week.
The US dollar index (DXY), which tracks the performance of the US dollar (USD) for six main currencies, is slightly higher on Wednesday and recovers above the level of 107.00 on Wednesday, where traders see DXY well amid tariffs and geopolitical addresses. Overnight, the President of the United States (United States), Donald Trump, said that the tariff of cars will be about 25 %, and drug imports and conductors will be added to the same scheme by April. President Trump tried to rejoice on the first day that is not successful for negotiations between Russia and US officials in a peace agreement on Ukraine, penetrated in the end and retains that Ukraine’s mistake was not concluded, and it may be difficult to make it.
regarding Economic evaluationAll eyes turn to the Federal Open Market Committee (FOMC) minutes from the Federal Reserve Policy (Fed) January. The minutes can provide some support to the US dollar, which was softened due to the weakest US revenue. The somewhat increasing minutes can raise us Rates Again, gradually getting rid of opportunities or possibilities for interest rate discounts for 2025, and see a stronger greenery as a final result.
Daily Digest Market Movers: Important minutes
- Mortgate’s weekly requests have already dramatically for this week, as it decreased by 6.6 % against last week’s performance.
- Before facing the latest FOMC minutes in the Federal Reserve, the focus will first turn into the American housing market at 13:30 GMT.
- Building permits are expected to slide in January to 1.460 million from 1.482 million in December.
- Housing is expected to slow in January to 1.4 million, and comes from 1.499 million.
- At 19:00 GMT, the Federal Reserve will make its notes in January of its monetary policy. It can be any touches or noisy tones sufficient to decrease the current price reduction expectations for 2025 and may mean that the US dollar is stronger in the result.
- Arrows are flat, with slight gains or losses in all fields. The Shanghai Chentine is externally, as it closed 0.7 % higher despite President Trump’s expansion of definitions to include drugs and chips.
- The CME Fedwatch tool shows a 53.5 % chance that interest rates remain unchanged at the current levels in June.
- The US return is traded for 10 years about 4.56 %, which is the highest level for this week.
Technical analysis of the US dollar index: Greenback not only cares
The US dollar index (DXY) is hardly moving to expand the scope of US President Donald Trump’s recent tariff. Greenback almost did not move on its back and only started to put a mark on Tuesday when the conclusion came that the first day of the talks between Russia and US officials had no result. with feeding After launching his minutes in January on Wednesday, DXY may move in any direction.
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 107.93 before restoring 108.00.
On the negative side, search for 106.52 (April 16, 2024, high), 106.51 (100 days SMA), or even 105.89 (resistance in June 2024) as support levels. Since the RSI momentum in the daily chart shows a field for more negative aspect, SMA for 200 days at 104.96 may be a possible result.
US dollar Index: Daily graph
Questions and answers in US dollars
The USD (USD) is the official currency of the United States of America, and a “reality” currency for a large number of other countries where there is a circulating alongside local notes. It is the most circulating currency in the world, as it represents more than 88 % of the rotation of global foreign currencies, or on average $ 6.6 trillion in transactions per day, according to data from 2022. After World War II, the United States took over from the British pound As a backup currency in the world. For most of its history, the US dollar was backed by gold, even the Bretton Woods agreement in 1971 when the golden standard went.
The most important individual factor that affects the value of the US dollar is the monetary policy, which is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability (control of control) and enhance full employment. Its primary performance to achieve these two goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, the Federal Reserve will raise rates, which helps the value of the dollar. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates, which weighs to green.
In maximum situations, the Federal Reserve can also print more dollars and 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 measure of the non -standard policy used when the credit is dry because banks will not lend to each other (for fear of failing to pay the opposite end). It is the last resort when it is unlikely to achieve interest rates simply the necessary result. The Federal Reserve is the preferred to combat the credit crisis that occurred during the great financial crisis in 2008. It includes the printing of the Federal Reserve more dollars and their use to buy US government bonds mostly from financial institutions. QE usually leads to the weakest US dollar.
The quantitative tightening (QT) is the opposite process in which the Federal Reserve stops buying bonds from financial institutions and does not invest the manager from the bonds he holds in new purchases. It is usually positive for the US dollar.
2025-02-19 12:27:53
https://editorial.fxsstatic.com/images/i/DXY-bearish-line_Large.png