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US Dollar Index (DXY) touches fresh weekly low around 107.60; downside seems limited
The post US Dollar Index (DXY) touches fresh weekly low around 107.60; downside seems limited appeared on BitcoinEthereumNews.com. USD meets with some supply on Thursday and hits a fresh weekly low during the Asian session. Hotter US CPI print tempers Fed rate cut bets and should act as a tailwind for the Greenback. Worries over Trump’s trade tariffs should contribute to limiting losses for the safe-haven buck. The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, extends the previous day’s retracement slide from over a one-week high and drifts lower through the Asian session on Thursday. The downward trajectory drags the index to a fresh weekly low, around the 107.60 area in the last hour, though the fundamental backdrop warrants caution for bearish traders. The US Consumer Price Index (CP) released on Wednesday pointed to still stick inflation. Furthermore, Federal Reserve (Fed) Chair Jerome Powell said inflation remains elevated above the 2% target and that the central bank wants to keep monetary policy restrictive. The markets were quick to react and now see just one Fed rate cut by the end of this year. This assisted the yield on the benchmark 10-year US government bond to register its biggest one-day rise since December, which, in turn, should act as a tailwind for the USD. Apart from this, worries about the potential economic fallout from US President Donald Trump’s protectionist policies continue to underpin traditional safe-haven assets and should contribute to limiting the downside for the Greenback. In fact, Trump signed executive orders on Monday to impose 25% tariffs on steel and aluminum imports into the US and also promised broader reciprocal tariffs to match the levies other governments charge on US products. This supports prospects for the emergence of some USD dip-buying. Market participants now look forward to Thursday’s US economic docket, featuring the release of the Producer Price Index (PPI) and the…
The post US Dollar Index (DXY) touches fresh weekly low around 107.60; downside seems limited appeared on BitcoinEthereumNews.com.
USD meets with some supply on Thursday and hits a fresh weekly low during the Asian session. Hotter US CPI print tempers Fed rate cut bets and should act as a tailwind for the Greenback. Worries over Trump’s trade tariffs should contribute to limiting losses for the safe-haven buck. The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, extends the previous day’s retracement slide from over a one-week high and drifts lower through the Asian session on Thursday. The downward trajectory drags the index to a fresh weekly low, around the 107.60 area in the last hour, though the fundamental backdrop warrants caution for bearish traders. The US Consumer Price Index (CP) released on Wednesday pointed to still stick inflation. Furthermore, Federal Reserve (Fed) Chair Jerome Powell said inflation remains elevated above the 2% target and that the central bank wants to keep monetary policy restrictive. The markets were quick to react and now see just one Fed rate cut by the end of this year. This assisted the yield on the benchmark 10-year US government bond to register its biggest one-day rise since December, which, in turn, should act as a tailwind for the USD. Apart from this, worries about the potential economic fallout from US President Donald Trump’s protectionist policies continue to underpin traditional safe-haven assets and should contribute to limiting the downside for the Greenback. In fact, Trump signed executive orders on Monday to impose 25% tariffs on steel and aluminum imports into the US and also promised broader reciprocal tariffs to match the levies other governments charge on US products. This supports prospects for the emergence of some USD dip-buying. Market participants now look forward to Thursday’s US economic docket, featuring the release of the Producer Price Index (PPI) and the…
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