EURUSD : is expected to increase strongly again
The DXY index had a volatile trading week. The DXY index and US Treasury yields fell in the first half of the week, but recovered in the second half following the release of inflation data. The index rebounded from a low of 105.54 to close the week above the 106 level.
As a result, the Consumer Price Index (CPI), an indicator of inflation in the United States, rose 3.7% (year-on-year) in September, contrary to market expectations. 3.6% increase in market. Core CPI was 4.1%, in line with market expectations.
The recovery from the low of 105.54 is positive for the DXY index. This reduces the likelihood of a correction to the 105-104 level mentioned last week. Support for the DXY index this week is 106. If the index breaks through the 106 level, it could move higher into the 107-107.50 range this week. This also maintains our medium-term bullish view targeting the 108 level.
As a result, the Consumer Price Index (CPI), an indicator of inflation in the United States, rose 3.7% (year-on-year) in September, contrary to market expectations. 3.6% increase in market. Core CPI was 4.1%, in line with market expectations.
The recovery from the low of 105.54 is positive for the DXY index. This reduces the likelihood of a correction to the 105-104 level mentioned last week. Support for the DXY index this week is 106. If the index breaks through the 106 level, it could move higher into the 107-107.50 range this week. This also maintains our medium-term bullish view targeting the 108 level.
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