US Dollar Index extends upside below the 104.00 mark, Fed rate decision looms

Source Fxstreet
  • The US Dollar Index (DXY) gathers strength around 103.88 in Wednesday’s early European session. 
  • The US Fed is likely to leave the interest rate unchanged for a fifth straight time at its March meeting on Wednesday.
  • The sticky inflation and strong labor market data in the US indicated the US might delay the rate cut cycle. 
  • Traders await the Fed interest rate decision and the press conference on Wednesday. 

The US Dollar Index (DXY) trades on a positive note for the fifth straight day near multi-week highs during the early European session on Wednesday. The upside of the US Dollar is supported by the growing speculation that the Federal Reserve (Fed) will maintain its high-for-longer interest rate narrative as inflation in the US remains elevated. Investors await the Fed monetary policy meeting and press conference on Wednesday for fresh catalysts. At the press time, the DXY is trading at 103.88, gaining 0.06% on the day. 

The US Fed is expected to leave the interest rate unchanged in a range of 5.25% to 5.5% at its March meeting on Wednesday. The financial markets believe the first rate cut will most likely be in June, but it could be as late as July. After the meeting, traders will closely watch Fed Chair Powell’s press conference, which might provide insight into the timing and the number of rate cuts to expect in 2024. The hawkish remarks from the Fed might provide some support for the US Dollar in the near term. 

The US economic data in recent weeks suggested that inflation in the US is easing from its peak levels, but still above the 2% target. Additionally, the strong labor market data indicated the US would not need to cut rates to prevent a recession. Fed Chairman Jerome Powell stated that lowering the interest rate too early might trigger an upsurge in inflation and cause more pain for consumers. The Fed is expected to stick to its forward guidance, emphasizing that it needs more evidence that inflation is on a sustainable path towards its 2% objective before cutting rates.

Looking ahead, market participants will closely monitor the Fed interest rate decision later on Wednesday, along with the press conference and a Summary of Economic Projections, or ‘dot-plot’. On Thursday, the preliminary US S&P Global PMI data for March will be due. Traders will take cues from these events and find trading opportunities around the US Dollar Index. 

Dollar Index Spot

Overview
Today last price 103.89
Today Daily Change 0.07
Today Daily Change % 0.07
Today daily open 103.82
 
Trends
Daily SMA20 103.54
Daily SMA50 103.6
Daily SMA100 103.5
Daily SMA200 103.68
 
Levels
Previous Daily High 104.06
Previous Daily Low 103.57
Previous Weekly High 103.5
Previous Weekly Low 102.64
Previous Monthly High 104.98
Previous Monthly Low 102.9
Daily Fibonacci 38.2% 103.87
Daily Fibonacci 61.8% 103.76
Daily Pivot Point S1 103.57
Daily Pivot Point S2 103.32
Daily Pivot Point S3 103.08
Daily Pivot Point R1 104.06
Daily Pivot Point R2 104.31
Daily Pivot Point R3 104.55

 


 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
XRP validates bullish pennant as lawyer weighs in on SEC's appeal against RippleRipple's XRP maintained a green outlook on Monday, rising more than 4% in the past week while other assets experienced a decline.
Author  FXStreet
Yesterday 01: 16
Ripple's XRP maintained a green outlook on Monday, rising more than 4% in the past week while other assets experienced a decline.
placeholder
Dogecoin Holders Are Buying Into This Crypto Priced At $0.0199 After Analysts’ $20 PredictionsDogecoin (DOGE) investors are currently on the lookout for the next big thing in the market. One project that has caught their attention is Remittix (RTX). RTX is a new altcoin that is currently trading at $0.0199. The presale success and utility of the DeFi coin could push its price to $20 soon. Meanwhile, the […]
Author  Cryptopolitan
23 hours ago
Dogecoin (DOGE) investors are currently on the lookout for the next big thing in the market. One project that has caught their attention is Remittix (RTX). RTX is a new altcoin that is currently trading at $0.0199. The presale success and utility of the DeFi coin could push its price to $20 soon. Meanwhile, the […]
placeholder
Have $8,000? These 3 Stocks Could Be Bargain Buys for 2025 and BeyondAmericans only have a median savings of $8,000 across all of their checking, money market, savings, call accounts, and prepaid debit cards, according to the Federal Reserve's lates
Author  The Motley Fool
20 hours ago
Americans only have a median savings of $8,000 across all of their checking, money market, savings, call accounts, and prepaid debit cards, according to the Federal Reserve's lates
placeholder
Dogecoin Price Forecast: DOGE outperforms SHIB and PEPE as traders bet on Trump Dogecoin price crossed $0.36 on Tuesday, outperforming rivals SHIB and PEPE with 13% daily timeframe gains.
Author  FXStreet
4 hours ago
Dogecoin price crossed $0.36 on Tuesday, outperforming rivals SHIB and PEPE with 13% daily timeframe gains.
placeholder
Ripple (XRP) Price Sees a Surge, Solana Targets $600 in 2025 as Investors Increase Focus on New AltcoinThe cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Author  Cryptopolitan
2 hours ago
The cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Related Instrument
goTop
quote