- Personal consumption data in January is in line with expectations.
- President Trump confirms that the customs tariff for Canada, Mexico and China will apply to March 4.
- DXY is scheduled to record a weekly gain of 0.60 %, sticking to the gathering on Thursday.
The US dollar index (DXY), which measures the value of the US dollar against a basket of six main currencies, is still firm than 107.00 on Friday after inflation data in PC (PCE) in January is in line with expectations, and relieves fears of unexpected high inflation.
Greenback maintains its recent gains, as President Donald Trump reaffirms that the customs tariff for Canada, Mexico and China will be implemented on March 4.
Daily Divest Market Movers: The US dollar holds a company after the PCE report
- DXY is around 107.30, aimed at maintaining its bullish momentum heading to the weekend.
- The Trump administration confirms that the customs tariff for Canada and Mexico will enter into force on March 4, as China faces an additional tax of 10 %.
- In January, inflation data achieved 0.3 % PCE, without changing the previous reading.
- Core PCE by 0.3 %, increasing from 0.2 % in December, while PCE is 2.6 % annual address, slightly exceeding expectations but walking with 2.6 % in December. Core PCE has reached 2.6 %, reduced 2.9 % revised in December.
- In addition, the Chicago Manager Index (PMI) jumps to 45.5, exceeding 40.6 consensus and improves January 39.5.
- Regarding expectations, the CME Fedwatch indicates that 30 % possibility that the Federal Reserve will keep rates unchanged at 4.25 % -4.50 % in June, with reference to potential cuts.
- On the Foreign Policy Front, tensions between US President Donald Trump and Ukrainian leader Foludmir Zelinsky over the peace agreement negotiations rise. Mzitzelinski led to defense promises, while Trump accused him of “not respected” in a hot public exchange.
Technical expectations DXY: keep steadily with weekly gains
The US dollar index remains above 107.00, as it unified the weekly gains by 0.60 % after the bounce over the simple moving average for 100 days (SMA) at 106.60. Technical indicators, including the RSI, the MACD, and the moderate restoration of the signal, but more bullish momentum is needed. The resistance is seen at 107.50, while support lies at 106.60 and 106.00, and it works as main levels in the event of the emergence of sale pressure.
