The US Dollar (USD) is trading sideways on Monday, with the US Dollar Index (DXY) hovering around 102.50. The market is awaiting the release of the US Consumer Price Index (CPI) data later this week, which will provide insights into inflation and influence expectations for the Federal Reserve’s (Fed) interest rate outlook.
Key Factors:
- Fed Speeches: Several Federal Reserve officials are scheduled to speak this week, providing potential insights into the Fed’s monetary policy stance.
- US CPI Data: The CPI data will be a key event for the market, influencing expectations for Fed rate cuts.
- Geopolitical Risks: The ongoing tensions in the Middle East continue to create uncertainty in the market.
Technical Analysis:
- Rangebound Trading: The US Dollar is trading in a narrow range, with potential support and resistance levels identified.
- Upside Potential: A break above 103.18 could lead to further gains, with potential targets at 103.34, 103.76, and 103.99-104.00.
- Downside Support: Key support levels are at 102.03, 100.62, 100.16, and 99.58.
Overall Outlook:
The US Dollar is likely to remain volatile, influenced by economic data, Fed speeches, and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.
