Dollar Index Soars to 103.30, Buy Interest Surges

The greenback, as observed through the Dollar Index, managed to attract some attention upward, hovering around the level of 103.30.

The USD Index is attentive to data and risk trends.

This index saw an increase in buying interest after experiencing a bearish performance on Friday, successfully bouncing back to the 103.30 zone after previously testing the 103.00 area at the beginning of Monday's Asian trading session.

Meanwhile, speculation regarding a potential interest rate cut by the Federal Reserve in the spring of 2024 continues to rise, despite differing views among some members of the Fed's policymaking body.

In the US economic calendar, Factory Orders for October will be the main focus of this session.

Searching around the USD:

The index appears to be consolidating at the low levels around 103.00 after hitting a three-week low of 102.40 last week. The dollar remains under pressure from speculation about interest rate cuts in the first half of 2024, in response to disinflation and a cooling labor market.

Support for the greenback remains through the resilience of the US economy and a hawkish narrative from some Fed members.

Key events this week in the US: Factory Orders (Monday) – Final S&P Global Services PMI, ISM Services PMI, RCM-TIPP Economic Optimism Index (Tuesday) – MBA Mortgage Applications, ADP Employment Change, Trade Balance (Wednesday) – PCE, Core PCE, Initial Jobless Claims, Wholesale Inventories, Consumer Credit Change (Thursday) – Nonfarm Payrolls, Unemployment Rate, Michigan Consumer Sentiment Flash (Friday).

Main constraints: Growing perceptions of a soft landing for the US economy, speculation of interest rate cuts in spring 2024, and geopolitical turbulence with Russia and China. The potential spread of the Middle Eastern crisis to other areas is a concern.

Relevance of the USD Index:

Currently, the index is up 0.10% to 103.29, and if it successfully breaks through 103.57 (200-day SMA), it will open up opportunities towards 104.21 (weekly high peak on November 22) and then 105.41 (55-day SMA). On the other hand, the nearest challenge arises at the level of 102.46 (monthly low on November 29), followed by 101.74 (monthly low on August 4), and then 100.51 (weekly low on July 27).

Warning!

The analysis of the "Dollar Index" is based on views from fundamental and technical perspectives from trusted sources, not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference for your trading.

Get the latest news and articles from GIC Indonesia, which you can check on Google News every day to find the latest updates in the world of forex to crypto. Trade also at GICTrade using an ECN account to enjoy trading with low spreads starting from zero!

Read Also: