The US Dollar sees some gains, while markets continue looking for clues on the Fed’s next steps. Several Federal Reserve members will speak on Monday
Finance
US Dollar holds strong on quiet Monday, cautious market mood
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, is slightly higher at the start of the week, supported by safe-haven flows amid geopolitical tensions. Some Federal Reserve (Fed) members are scheduled to speak later on Monday, and their comments will be closely watched for any clues on the Feds monetary policy stance.
Daily digest market movers: US Dollar gains on Middle East tensions and Fed comments
DXY technical outlook: DXY momentum might have hit its ceiling
The DXY index is facing resistance at the 200-day Simple Moving Average (SMA). Despite resuming the gains, the momentum may not be enough to conquer it. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) have flattened in positive territory, indicating a pause in buying momentum with the latter still in overbought territory.
As a result, the index may struggle to regain the 200-day SMA and may instead consolidate sideways in the near term.
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