American Dollar sees that PPIs make no difference, while the risk of the header rises

The American dollar trades softer on Thursday compared to most main peers.
Traders will quickly ignore the latest version of producers (PPI).
The American dollar index (DXY) is below 108.00 and is flat for this week.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to six main currencies, is not chosen anywhere, because traders have problems balancing winds with a possible peace agreement for Ukraine and Russia, the manufacturer of the American manufacturer Index (PPI) Reficocal data and tariffs that should be applied. The reaction of the knee-grain appears after the release of the US consumer price rate (CPI) stronger than expected data in January, which increased the US dollar above. However, the return took place during a trading session in the USA, when the President of the United States (USA) Donald Trump and Russian President Vladimir Putin agreed on the phone to start peace conversations with Ukraine.

The economic calendar takes place on this Thursday, and traders are now focusing on retail sales in the US on Friday. The last data points for this week want to be consistent with what the Federal Reserve (FED) expects. It remains too early to say whether the American economy will surpass again or will swipe from here.

Daily Digest Market Movers: Risk in the US session

US President Trump issued a warning to Hamas and the Gaza region, demanding that Hamas releases all hostages on Saturday or “All Hell will free himself”, informs Reuters.
US President Donald Trump reported in this social network that on Thursday on Thursday he would be handed over about the REPICAL tariffs.
The possibility of starting peace conversations between Russia and Ukraine stimulates risk and euros (EUR) assets in relation to the US dollar (USD). This, in turn, triggers the tender index of the American dollar. The euro accounts for 57.6% weight in DXY.
Almost all essential data for this Thursday were issued:
- American claims for a week ending on February 7 brought 213,000, below 215.00 Is 219,000 last week. The continued claims ending on January 31 fell to 1,850 million, below 1.880 million estimates and from the previous 1.886 million.
- The monthly PPI headline in January was marked to 0.4%, above 0.3% respect and fell from the amended 0.5% (previous 0.2%).
- The monthly basic PPI in January amounted to 0.3% as expected, comes from the amended 0.4% (previous 0%) in December.
Actions are in a good mood. The European indexes are ahead of American Futures, and all the main indicators and futures are green.
After a stronger reading of the January CPI reading, the CME Fedwatch tool shows 64.3% of the chance that interest rates will remain unchanged at current levels in June, compared to 50.3% before issuing. He suggests that the Fed would keep stakes unchanged longer, fighting with lasting inflation.
The 10-year profitability in the US is about 4.56%, moving lower compared to the highest level this week of 4.657%.

American dollar index Technical analysis: puzzle

The American dollar indicator (DXY) again proves work that when all banks require a specific direction or target level, the opposite often materializes. At the beginning of this year, almost all major banks envisaged parity in EUR/USD. In the case of peace conversations between Russia and Ukraine, probably in progress and tensions in Ukraine, perhaps ending in 2025, a much weaker American dollar can be a scenario that only a few retained as a possible result.

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, High) still acts as robust support after several tests from the end of January. In the event that there is more disadvantages, look for 106.52 (April 16, 2024, high), 106.28 (100-day straight average movable property), and even 105.89 (resistance in June 2024) as better levels support.

American dollar index: daily chart