Us Dollar At Yearly Lows

last updated on

Us Dollar At Yearly Lows

Us Dollar At Yearly Lows Ahead Of Us Retail Sales

US Dollar (USD) remains flat with little movement on Tuesday as everyone is on the sidelines before the main event. The FOMC meeting starts on Tuesday and we will get the final policy decision next day about the rate cuts.

One thing has become certain and that is we are indeed getting a rate cut from the US Federal Reserve. Now, the question is whether it will be a 25 bps or a 50 bps rate cut. Right now, everyone is on the boat of 50 bps rate cut but the final decision will be in the hands of the US central bank.

Dxy Faces Resistance At 101.90

Once the meeting is concluded, Fed Powell will also share his views in a press conference. So, that's also a key event that will be closely watched for any future cues.

Amidst all of this, the US Retail Sales data is also today but it will not prove to be a big market moving event. In the past, the US Retail Sales has led to some big moves but that will not be the case this time.

The only scenario where the US Retail Sales will lead to some big moves in the FX market is a big contraction in August. In that case, it will become certain that the US central bank will be forced to deliver 50 bps rate cut.

If we look at the DXY, the upper resistance is near 101.90, followed by the next one near 103.18 - 103.20. After that, 103.80 is also a key level at which the 200 SMA is located. Similarly, the 103.88 is also equally important as that's where the 100 SMA is present.

On the way down, the first support is around 100.62, followed by the next one around 100.00 and then 99.58. The FOMC meeting has the potential to either drive up the DXY or push it to record lows.

Trending Stories