What happened in the Asia session?
The DXY is likely to recover from the drop in the past few weeks, and we could see Gold falling rising later during the day if the US dollar index (DXY) continues to rise up higher, towards a resistance level. We could see lesser volatility in the Asia session and price is most likely preparing for the upcoming US session, when there will be impact news release.
What does it mean for the Europe & US sessions?
We could see volatility in the markets for the USD pairs as there is high impact news later on during the day, especially for the US currency pairs, which could determine whether the DXY would continue to recover to the upside or fall further to the downside.
The Dollar Index (DXY)
Key news events today
ISM Manufacturing PMI (3:00 pm GMT)
Fed Chair Powell Speaks (4:00 pm and 7:00pm GMT)
What can we expect from DXY today?
The DXY could possibly gain enough bullish momentum here, rising up further during the Asia session. Due to the positive results of both the US news yesterday during the US session, we could expect DXY to recover from the previous low, to rise towards the next resistance level at 103.95. However, the movement of DXY will be determined by the high impact news release later on today.
Central Bank Notes:
- The Federal Funds Rate target range remained unchanged at 5.25% to 5.50% for the second meeting in a row.
- The Committee seeks to achieve maximum employment and inflation at the rate of 2.0% over the longer run.
- The Committee will continue to assess additional information and its implications for monetary policy.
- In determining the extent of additional policy firming that may be appropriate to return inflation to 2.0% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
- Next meeting runs from 12 to 13 December 2023.
