The U.S Dollar Index (DXY) has moved nearly 0.2% higher this week amid a slew of data points and global geopolitical developments. With a year-to-date rise of nearly 2.6%, the DXY continues to hover around the key 104 support level.
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The latest core PCE print indicates that inflation continues to be sticky. While consumer spending remains strong, traders are largely pricing in rate cuts of about 80 basis points this year. However, the timing of any potential cuts remains opaque, with some quarters of Wall Street leaning towards June-July.
In addition, the Japanese Yen could continue seeing weakness after the latest comments from the Bank of Japan indicated the need for more confirmation of sustainable prices being within grasp. Meanwhile, with clouds of a broader conflict continuing to brew over Europe, the ECB could take a while before going for a rate cut.
The upcoming print for consumer sentiment could decide the next trajectory for the DXY. Still, the DXY could face immediate resistance at the 104.55 level.
Source: TradingView
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