- DXY cuts initial gains and returns to the 92.00 area.
- US 10-year yields trim previous post-CPI advance.
- The US headline CPI rose 0.4% month-on-month, up 1.7% year-on-year in February.
The US Dollar Index (DXY), Measuring the dollar against a group of its main competitors, it moves away from recent highs and challenges the 92.00 zone.
US dollar index loses ground to disappointing CPI
The index now alternates gains and losses in the 92.00 area following disappointing US inflation figures for the month of February.
In fact, followed by the CPI, general consumer prices increased 0.4% month-on-month and 1.7% year-over-year, while prices excluding food and energy costs (core CPI) increased only 0.1% month-on-month and 1.3 % in the last 12 months.
The listless CPI publishes forced returns from the 10-year benchmark to give up part of the previous advance and return to the 1.54% / 1.55% zone.
Previously, in the US data space, mortgage applications contracted 1.5% weekly for the week ending March 5 according to MBA.
What to look for around USD
Overall sentiment in the dollar remains strong and pushed the index to new highs at 92.50 earlier in the week. The recent change in attitude in the dollar came along with the strong rebound in US yields to levels recorded more than a year ago, all in the context of the growing perception of investors of higher inflation in the coming months. However, a sustainable move to the upside for the DXY should be taken with a pinch of salt amid the Fed’s mega-accommodative stance (until “substantial gains” are seen), additional fiscal stimulus, and hopes for a strong economic recovery. abroad.
Relevant levels
At the moment, the index is up 0.01% to 91.98 and a breakout of 92.50 (March 9, 2021 high) would expose 92.85 (200-day SMA) and finally 94.30 (November 4, monthly high). On the downside, the next support is at 91.19 (100-day SMA) followed by 91.05 (February 17 high) and then 90.61 (50-day SMA).
.
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.
