Next move for the USD can be defined by the US CPI data [Video]
|The US CPI is going to be an important event today, where investors will define next important move for the markets, as it may become clearer if FED really did not do enough to fight inflation, or if maybe Powell will stay on hold after all. Expectations are 3.3% (y/y) down from 3.7%, and one of the reasons for a drop in inflation figures can certainly be crude oil prices that came down in the second part of October. So if expectations are met, the USD can eihter come down or stay sideways, but if data disappoints then DXY will move sharply higher with US yeilds while stocks can make a pullback which is technically expected as talked about in our video below.
Looking at the DXY, index has only three legs down from the highs, and if price can move beyond 106.30 and finish the day above that level, then bulls can be back for 108. On the other-hand, drop and break below 104.85 will be bearish for DXY.
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