- The US dollar index fell nearly 107.00 after the sharp decrease on Thursday.
- US retail sales decreased by 0.9 % in January, and missed expectations and fuel price reduction speculation.
- US Treasury revenue continues to decrease with the return for 10 years less than 4.50 %.
The US dollar index, which tracks the performance of the US dollar against six major currencies, remains stable after the loss of losses in the previous session. At the time of writing this report, DXY hovers around 107.00, where economic data continues to draw a mixed image. Weighs the low -mo -of -morale retail sales, but industrial production provides some support.
Daily Digest Market Movers: The US dollar weakens with reassessing traders in expectations
- Retail sales in the United States decreased by 0.9 % in January, which is much worse than -0.1 % expectations, which raised concerns about consumer spending.
- Retail sales were revised in December top to 0.7 %, which met slightly the latest disappointing data.
- Industrial production increased by 0.5 % in January, overcoming expectations by 0.3 % but slowdown in December 1.0 % growth.
- Weakly retail sales may reassess expectations for the Federal Reserve Path.
- Federal Reserve Chairman Jerome Powell repeated that monetary policy amendments require tangible progress of inflation or weak labor market.
- Now, the CME Fedwatch tool now shows a 55 % probability of the rates that have not changed in June, which reflects uncertainty in the market.
- US Treasury revenue continues to decrease sharply with a decrease in the return for 10 years to 4.47 % and made investors lose attention to US dollars.
Technical expectations DXY: an additional risk on the downside as well
The US dollar index remains under pressure after a 20 -day moving average loss (SMA), indicating a decreased shift. The RSI is to weaken the negative momentum, while the difference of moving medium rapprochement (MACD) remains firmly firmly in the Habbudian lands.
Immediate support in SMA appears for 100 days near 106.30 with a lower rest than this level is likely to confirm a short -term negative look. On the upper side, the resistance is now seen at 107.50, followed by SMA for 20 days at 108.00.
