- The DXY index retraces part of Monday’s advance and falls below the 96.00 level.
- US yields appear to be taking a breather around recent highs.
- The release of the NFIB index and the IBD / TIPP index stands out on the US economic calendar.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, moves defensively and falls back below the 96.00 level during the European session on Tuesday.
DXY Index focuses attention on returns and Powell
The DXY Index extends the erratic performance for another session on Tuesday, returning part of monday’s earnings and always in the midst of the broad consolidation movement prevailing since the beginning of December.
What’s more, upward momentum in US yields appears to have run out of steam after last week’s strong rebound and are now looking to stabilize in the area of recent highs, at the same time removing some of the dollar’s strength.
There has been no significant reaction in currencies after the talks between the United States and Russia they will end with a promise to resume the dialogue in the not-so-distant future.
Regarding the US data, President Powell to testify before the Committee on Banking, Housing and Urban Affairs, with the imminent start of the monetary policy tightening cycle by the Fed.
In addition, the publication of the NFIB index and the IBD / TIPP index stands out on the US economic calendar.
Relevant levels of the US dollar DXY index
At the time of writing, the DXY index is down 0.11% on the day, trading at 95.84. A break above 96.46 (Jan 4 high) would open the door to 96.90 (Dec 15 high) and 96.93 (Nov 24 high). On the other hand, the next support appears at 95.57 (December 31 low), followed by 95.51 (November 30 low) and 94.96 (November 15 low).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
