Jump to content

US Dollar Sinks as Markets Reverse Ahead of ECB and US CPI. Where to for DXY Index?


Recommended Posts

US DOLLAR, CRUDE OIL,EUR, NOK, SEK, USD, JPY, CHF, ECB, US CPI - TALKING POINTS

  • The US Dollar eased today as markets liked what they heard about Ukraine
  • Equities move higher, commodities went lower, and currencies were mixed
  • All eyes on ECB and US CPI today. Will USD (DXY index) resume its uptrend?

 

US Dollar Crossroads Lie Ahead As The Market Eyes US CPI. Where To For USD?

The US Dollar pulled back over 1% from its recent peak as the markets sighed a breath of relief on the announcement over night that Ukraine may consider a “diplomatic solution”.

This solution would involve a commitment by Ukraine to neutrality but maintenance of all its territory.

At the end of the North American session, the commodity price board was all red while the equity board was all green in a reversal of recent fortunes.

Currencies that had been rallying sold off, and vice versa. EUR, NOK and SEK were the big gainers, while USD, JPY and CHF lost ground.

The Nasdaq was up 3.6% in its cash session and APAC equities have also gone north. A lower oil price boosted Japan’s Nikkei 225 by more than 4% at one stage today. The island nation is a major energy importer.

The WTI and Brent crude oil futures contacts are a long way from their recent highs with WTI near US$ 111 bbl from US$ 130.50 bbl, and Brent at around US$ 114 bbl from US$ 139.15 bbl.

Nickel remains closed on the London Metal Exchange (LME) and all other commodities – energy, metals and agriculture – were notably lower. At the time of going to print, gold is near US$ 1,980 an ounce, down from US$ 2,070 seen on Tuesday.

G-10 government bond yields ticked up, with the benchmark 10-year Treasury note now yielding 1.94%, up around 27 basis points from the low on Monday.

The European Central Bank (ECB) will be meeting today, and they are expected to leave rates unchanged. The focus will be on the commentary from ECB President Christine Lagarde when she gives a press conference immediately after the pow wow.

The US Dollar softened ahead of US CPI later today where the market is anticipating year-on-year headline CPI to be 7.4% and core CPI to print 6.4%, both 0.4% above last months’ figures.

The US will also get some jobless claims data at the same time as CPI.

The full economic calendar can be viewed here.

 

US DOLLAR (DXY INDEX) TECHNICAL ANALYSIS

After making a peak at the start of the week, the US Dollar index (DXY) pulled back to support levels but was unable to penetrate below them.

The10-day simple moving average (SMA) and the pivot point of 97.802 may continue to provide support. Below that, 97.441 and 96.462 might also provide support.

On the topside, the recent high of 99.418 could offer support ahead of the highs seen in early 2020 at 100.556 and 100.931.

USD CHART

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com. 10th March 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Hey all, as some of you know, I've been reviewing quite a few new crypto projects lately and breaking down what they're about and the problems they aim to solve. Today, I'll be doing the same for a platform called HiveSwap. HiveSwap is a decentralized exchange operating specifically within the Bitcoin ecosystem. It utilizes the MAP Protocol to enable interoperability and facilitate seamless token swaps across Bitcoin's various layers - the base layer, layer 2 networks, and the MAP interoperability layer itself. A major selling point is HiveSwap's ability to bridge the gap and allow swaps between Bitcoin ecosystem assets and those from major EVM chains like Ethereum, BNB Chain, Polygon, and more. This cross-chain functionality is huge. The platform is also tackling liquidity issues for emerging asset classes like inscriptions and BTC-related tokens. HiveSwap provides a decentralized avenue for swapping these types of assets and creating liquidity pools, rather than being confined to centralized venues. With its robust underlying swap technology framework, HiveSwap ensures reliability and security for users contributing liquidity. It also incentivizes liquidity provision through liquidity mining rewards paid out in tokens. Overall, HiveSwap is positioning itself as the leading decentralized exchange within the Bitcoin realm. It's solving key interoperability challenges, bringing much-needed liquidity to newer assets, and leveraging proven tech for secure, trustless cross-chain/cross-layer swaps. HiveSwap is bridging multiple gaps in Bitcoin DeFi.
    • For those who love memecoins, there's an exciting new project called RUNES•X•BITCOIN that's worth checking out.    It's a meme coin developed using the Runes protocol on Bitcoin's blockchain. The "X" theme is a clever reference to Elon Musk and the idea of limitless possibilities.   But what makes it truly unique is that it's 100% decentralized and community-driven. The entire token supply was airdropped for free to anyone holding assets with the letter "X" in the name or ticker.   So if you had X domains, X NFTs, or BRC20 tokens containing X, you automatically received free RUNES•X•BITCOIN tokens. How's that for decentralized distribution?   The project has already exploded in popularity. Over 100,000 addresses now hold this Rune, making it the biggest one by that metric. And get this – the market cap skyrocketed from $2.1 million at launch to over $13 million! Insane growth. If you're looking to get involved, I heard Bitget has a series of events planned for this project, so you might want to check those out.   Some other key highlights: - The Rune code 110# seems to have a hidden meaning  - It utilizes cutting-edge Runes tech built on Bitcoin's UTXO model for fungible tokens - Fully decentralized, with no central control   RUNES•X•BITCOIN is bringing meme culture and community experience to Bitcoin in an innovative, decentralized way. While it might be considered a legitimateshitcoin, the concept and crazy early traction are certainly wild! It's definitely a project worth keeping tabs on in the BTC space.
    • I guess alot of people will be smiling rn having recieved their airdrop allocation some couple of hours ago. ANd with the pretrading price at $2, a lot of those farmers are anticipating huge cash out but let's see what the listing brings!
×
×
  • Create New...
us