FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its bitit review display or use. Natural gas and cocoa futures posted double-digit percentage gains in December 2024. The worst-performing futures markets were palladium and world sugar futures, with over 8% declines.
Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called ‘doves’. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called ‘hawks’ and will not rest until inflation is at or just below 2%. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. The dollar index (DXY00) on Friday fell by -0.52%, posting a new 2-month low and adding to Thursday’s decline of -0.58%.
- It is the task of the central bank to keep the demand in line by tweaking its policy rate.
- Long term indicators fully support a continuation of the trend.
- Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy.
- XRP, Solana (SOL) and Dogecoin (DOGE) gained 5.91%, 2.88% and 3.36% respectively on Friday.
- For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages.
- Information is provided ‚as is‘ and solely for informational purposes, not for trading purposes or advice.
- All market data (will open in new tab) is provided by Barchart Solutions.
US Dollar Index holds position above 107.00 ahead of Retail Sales figures
When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy.
EUR/USD gains on delay in Trump’s reciprocal tariffs, poor US Retail Sales data
Friday’s US Jan retail sales report of -0.9% was weaker than expectations of -0.2%. Excluding autos, Jan retail sales fell by -0.4%, weaker than expectations of +0.3%. Jan “control group” retail sales, which excludes volatile sectors, fell by -0.8%, weaker than expectations of +0.3%. However, the retail sales report was undercut to some extent by the wildfires in California and severe weather in various areas of the country.
Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday
- However, continued tariff uncertainty and geopolitical developments will keep volatility elevated in the near term.
- Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating.
- The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period.
- This policy uncertainty, combined with Powell’s “wait and see” stance, left the dollar in a volatile position.
- A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency.
The continuation of the offered stance in the Greenback coupled with declining US yields across the board underpin the extra rebound in Gold prices, which trade at shouting distance from their record highs. This is to be expected since the average includes data from the previous, lower priced days. As long as prices remain above the average there is strength in the market.
Inflation turns up the heat: CPI scorches expectations, Wall Street sweats
The week began https://www.forex-world.net/ with a stronger-than-expected Consumer Price Index (CPI) report, which showed a 0.5% monthly rise, exceeding the 0.3% forecast. This pushed traders to scale back expectations for aggressive Federal Reserve rate cuts, strengthening the dollar. However, later in the week, the Producer Price Index Consumer Price Index (CPI) report pointed to lower-than-expected core inflation, causing a reversal in sentiment. The Barchart Technical Opinion widget shows you today’s overall Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.
Latest On ICE U.S. Dollar Index
Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. As a result, traders adjusted their expectations, now pricing in 33 basis points of rate cuts by December, up from 27 basis points earlier in the week. This policy uncertainty, combined with Powell’s “wait and see” stance, left the dollar in a volatile position.
US Dollar Index Technical Analysis: Here goes logic
The New Highs/Lows widget provides a snapshot of US stocks that Forex momentum indicator have made or matched a new high or low price for a specific time period. Stocks must have traded for the specified time period in order to be considered as a new High or Low. During his first testimony at Capitol Hill facing law makers, Federal Reserve (Fed) Chairman Jerome Powell did not leave many clues about the timing for another interest rate cut by the central bank, if any. Traders are mulling what to do next, with US yields slowly but surely starting to head higher this week. New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares.
The dollar was undercut by Friday’s weak US retail sales report and a -5 bp decline in the 10-year T-note yield, which added to Thursday’s decline of -9 bp. Also, there were continued fears about a global trade war after President Trump on Friday said that new tariffs on autos are coming around April 2. Looking ahead, traders will focus on the upcoming Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation measure. Any upside surprises in PCE could reinforce rate-hike expectations and provide support for the dollar. However, continued tariff uncertainty and geopolitical developments will keep volatility elevated in the near term.
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