US Dollar consolidates near 1-month tops, just below mid-97.00s ahead of US CPI
• Rebounding US bond yields/US-China trade optimism extend some support.
• Risk-on mood/recovering British Pound keep a lid on any meaningful up-move.
• Today’s key focus will be on the latest US consumer inflation figures for Nov.
The US Dollar Index (DXY) seesawed between tepid gains/minor losses and consolidated overnight gains to near one-month tops.
On Tuesday, the greenback managed to regain positive traction following the release of stronger than expected US core PPI figures, showing that a measure of wholesale inflation remained elevated at 2.8% in November. The buck extracted some additional support from overnight reports that China was considering cutting import tariffs on American-made cars to 15% from the current 40%.
However, a combination of diverging forces failed to provide any fresh impetus and led to a subdued/range-bound price action through the mid-European trading session on Wednesday. The US Treasury bond yields staged a goodish rebound from three-month lows and extended some support, though a modest recovery in the British Pound and the prevalent risk-on mood kept a lid on any meaningful up-move.
Traders also seemed reluctant to place any aggressive bets ahead of today's key release of the latest US consumer inflation figures for November, due later during the early North-American session. The data might influence market expectations over the Fed's monetary policy outlook for 2019 and any strong signals of easing inflationary pressure might prompt investors to price in a possible pause in the rate hike cycle and eventually prompt some fresh selling.
Technical levels to watch
Dollar Index Spot
Today Last Price: 97.37
Today Daily change: -10 pips
Today Daily change %: -0.103%
Today Daily Open: 97.47
Previous Daily SMA20: 96.9
Previous Daily SMA50: 96.45
Previous Daily SMA100: 95.77
Previous Daily SMA200: 94.14
Previous Daily High: 97.55
Previous Daily Low: 96.87
Previous Weekly High: 97.21
Previous Weekly Low: 96.37
Previous Monthly High: 97.7
Previous Monthly Low: 95.68
Previous Daily Fibonacci 38.2%: 97.29
Previous Daily Fibonacci 61.8%: 97.13
Previous Daily Pivot Point S1: 97.04
Previous Daily Pivot Point S2: 96.62
Previous Daily Pivot Point S3: 96.36
Previous Daily Pivot Point R1: 97.72
Previous Daily Pivot Point R2: 97.98
Previous Daily Pivot Point R3: 98.4