PPI forecast and the State of the Dollar

PPI forecast and the State of the Dollar

2023-03-14 • Updated

Since the fateful events of March 10th, 2023, I mean the SVB and Signature Bank crash, there has been a lot of attention on the US economy and the Dollar from the international community. In this light, examining the effects, this attention might have on the US Dollar ahead of the upcoming PPI data is crucial.

DXY - US DOLLAR

UsDollarDaily-1403.png

DXY has just recently broken below the previous low at 104.116. There is usually a bit of retracement after a breakout in the market. On this premise, I will maintain a bullish sentiment on the Dollar, with a target of 105. However, please note that the overall trend is still bearish, based on the position of the Moving Averages, the recent break below the previous low, and the Fibonacci of the breakout move; we are simply trying to capitalize on the retracement move here!

Analysts’ Expectations:

Direction: Bullish

Target: 105

Invalidation: 103.4

EURUSD

EURUSDDaily-1403.png

As for EURUSD, if we expect the US Dollar to be stronger, it means EURUSD should be bearish by correlation. Combine that with the fact that the price has just recently been rejected from the 100-Day Moving Average and the rally-base-drop supply zone on top of it, and you will end up with a clear bearish sentiment.

Analysts’ Expectations:

Direction: Bearish

Target: 1.05799

Invalidation: 1.07551

GBPUSD

GBPUSDDaily-1403.png

Similar to the setup on EURUSD, we see how GBPUSD reacts to the supply zone around the 76% Fibonacci retracement level. My target price here is 1.19226.

Analysts’ Expectations:

Direction: Bullish

Target: 1.19226

Invalidation: 1.22065

XAUUSD

XAUUSDDaily-1403.png

XAUUSD aligns with our US dollar sentiment based on the DXY chart. On the Daily timeframe, we see the recent break below the low at 1897.55 and the rejection from the rally-base-drop supply zone at 76% of the Fibonacci retracement. This goes to confirm our expectation of a stronger US Dollar.

Analysts’ Expectations:

Direction: Bearish

Target: 1915.7

Invalidation: 1881.00

US500

US500Daily-1403.png

US500 paints a very clear picture. The trendline support, a breakout above the previous high, the drop-base-rally demand zone, the 88% Fibonacci retracement level, and the relative position of the moving averages to one another all speak in favor of a bullish movement.

Analysts’ Expectations:

Direction: Bullish

Target: 3967.55

Invalidation: 3786.32

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more of such trade ideas and prompt market updates on the telegram channel.

Similar

Australian GDP: What to Expect
Australian GDP: What to Expect

Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.

Gold and the Majors ahead of the NFP
Gold and the Majors ahead of the NFP

Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.

What to Trade in June
What to Trade in June

Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!

Latest news

SEC Crackdown and the future of Crypto
SEC Crackdown and the future of Crypto

Are you aware of the recent crackdown by the SEC on major cryptocurrency exchanges, Binance US and Coinbase? Surprisingly, savvy Bitcoin traders seem unfazed, as options-based implied volatility metrics indicate. It appears that the lawsuits were anticipated and already factored into the market. Implied volatility reflects investors' expectations of price turbulence, but little evidence of heightened concern exists.

US Dollar at Crucial Zone: What Next?
US Dollar at Crucial Zone: What Next?

Let's dive into the recent debt ceiling saga in the US and its implications for the economy, deficit, and inflation. The good news is that a new debt deal is on the horizon, saving us from a potential default on June 5. Phew! This deal will impact the economy by providing stability and avoiding a financial catastrophe.

CAD Outlook Ahead of BoC Overnight Rate
CAD Outlook Ahead of BoC Overnight Rate

Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera