

Dollar eases on weak U.S. inflation data while kiwi plummets following rate cut

The U.S. dollar started Wednesday on shaky ground after tumbling overnight against major currencies, driven by a surprisingly benign reading on U.S. producer prices. This report has amplified expectations that the Federal Reserve might lean towards rate cuts later this year. The US Dollar Index (USDX) is displaying a bearish trend. The index shows a downward movement from its recent high, indicating selling pressure. The Moving Averages (MAs) are sloping downward, signalling a continuation of the bearish momentum. The MACD histogram is negative, and the MACD lines are below the signal line, further confirming the bearish sentiment. Traders may be eyeing the support level for potential reversal or continuation opportunities. Read more to find out about the USDX trend.

more about USDX trend

Disclaimer:

As markets await the release of U.S. CPI data, cautious positioning is likely to dominate. Any surprise in the inflation numbers could lead to sharp moves across currency pairs, particularly if the data diverges from expectations. Traders should be mindful of the potential volatility that lies ahead, particularly in light of recent central bank actions and the evolving economic landscape.

Publication date:

2024-08-19 07:55:19 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.