Wednesday Briefing; May 18, 2022
US Dollar Index Overview
- The DXY recovers sharply from previous losses after robust U.S. economic indicators released yesterday.
- The intraday high is 103.77 and low at 103.19 mark.
- A day Chart with triple EMA confirms up trend while H1 chart suggests short term downside trend reversal.
- Immediate hurdles are seen at 103.90 to 103.24 mark.
- A sustained close of either side on H1 chart requires for the further directions.
Today U.K. released CPI data at 9.0 pct vs 9.1 pct expected (previous 7.0), which is the highest inflation data since last 40 years. The sterling weakens drastically and slips back below $1.2400 mark. The GBP/USD parity gave almost 120 pips movement after the CPI data released.
While Euro too released CPI data with negative numbers at 7.4 pct vs 7.5 pct previous and Core CPI remained unchanged at 3.5 pct. Euro remains almost unchanged after CPI data.
Throughout the day G7 meetings will remain in focus.
U.S. session will remain light at U.S has scheduled to release Housing start and Building permits data at 1230 GMT/1800 IST.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!