DXY Dollar Index Ahead of Key Central Bank DecisionsDXY Dollar Index Ahead of Key Central Bank Decisions
The DXY Dollar Index has experienced a pullback over the past two weeks after reaching a multi-year high. Currently the index stands at 107.90, down by over 2% from its highest level this month
Major key events influencing the index:
Central Bank Decisions:
Focus is on interest rate decisions from key central banks, including the Bank of Canada, the Federal Reserve and European Central Bank (ECB). The ECB is expected to cut rates by 0.25%, BOC is expected to cut rates by 0.25%, while the Federal Reserve is anticipated to maintain high interest rates on hold today.
The recent US economic data showed a rise in the Consumer Price Index (CPI) and a strengthening labor market. The Federal Reserve's decision to maintain a wait-and-see approach amid rising inflation trends has caused the US dollar show some weakness.
Key Levels to Watch:
Support Levels: 106.80 and 106.0.
Resistance Levels: 108.50 and 109.40.
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