The American dollar is preparing for the American release of CPI and the second day of Powell Speak

The American Dollar trades flat on Wednesday, entering the CPI in the USA.
Fed Chairman Jerome Powell goes to his second day at Capitol Hill.
The American dollar index (DXY) flat -trading around 108.00, still looking for a direction.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to the six main currencies, trades about 108.00 unchanged after the chairman of the Federal Reserve (Fed) Jerome Powell did not leave any tips for markets when he will take place in the face of legislators on Tuesday at Capitol Hill. Powell has not left many tips on the date of the next interest rate reduction by the central bank, if it exists. Traders are wondering what to do next, and we are sluggish, but we certainly start higher this week.

The economic calendar shows that the number of consumer prices (CPI) for January is due on Wednesday. The expectations are not very high and the monthly CPI headline will augment by 0.3% compared to 0.4% in December. A monthly basic CPI rate is expected to augment by 0.3%, with 0.2% in the previous month. Meanwhile, Fed Chairman Jerome Powell will give a speech on the second day in a row at Capitol Hill.

Daily Digest Market Movers: CPI forward

At 13:30 GMT data will be published in the consumer price index in January:
- It is expected that the monthly CPI headline will augment by 0.3%, with 0.4% in the previous month.
- The monthly core inflation rate is expected to be granted to 0.3%, compared to 0.2% in December.
- A stronger number of inflation would fuel higher US rates, and the turn would cause a stronger American dollar (USD)
At 15:00 GMT, Fed Chairman Jerome Powell will start his second day of testimony on the Capitol.
At 17:00 GMT, president of federal reserves in Atlanta Raphael W. Bostic gives comments in the Atlanta National Association of Corporate Directors chapter.
At 22:05 GMT Governor of the Federal Reserve Christopher Waller is to speak at a “very stable conference: Stablecoin for Real World Applications” in San Francisco, California.
Actions are before the wind after the first day of testimonies of the chairman of Fed Powell. In addition to the German DAX reaching fresh height, in general, most indexes trade with diminutive profits or losses.
The CME Fedwatch tool designs 95.5% chance that the FED will maintain interest rates unchanged at the next meeting on March 19.
The 10-year profitability in the USA is about 4.54%, ticking the third day in a row and poured further after a fresh low-year level of 4.40% printed last week.

American dollar index Technical Analysis: It’s strenuous to read

The American dollar index (DXY) got stuck in the Cliedo game, and the chairman of the detective Fed Powell does not distribute any tips. When traders left unaware of what or when the FED will perform their next move, slowly, but certainly, bonds return to the merchant’s grace as a safe and sound place during periods of uncertainty. Thanks to this, the American dollar should only, but certainly a bit of influx and ticking higher.

On the other hand, the first barrier at 109.30 (July 14, 2022, High) was briefly exceeded, but it did not take place last week. After recovering this level, the next level, which should be achieved before promotion, is 110.79 (September 7, 2022, High).

On the other hand, 107.35 (October 3, 2023) still acts as forceful support after several tests last week. In the event that there is more disadvantages, look for 106.52 (April 16, 2024, high), 106.21 (100-day straight moving average), and even 105.89 (resistance in June 2024) as better levels support.

American dollar index: daily chart