• American Dollar maintains slight profits after a rather disappointing PMI version in the USA.
• The US economy no longer exceeds or exceeds the euro area.
• The American dollar index (DXY) returns to the region of mid -106.00.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to the six main currencies, trads around 106.60 at the time of writing after a rather disappointing preliminary (US) initial index purchase manager (PMI) Release (PMI) for February . The main element that stood out was the service sector, which fell into contraction by 49.7, disorders of 53.0 and below reading 52.9. Uptick in the production sector helped give some counterweight to this rather disappointing service number.

After all data from the US for this week, hence all eyes will go to Sunday, when German elections are to take place.

Daily Digest Market Movers: Inflation expectations

• In the early European trade session, preliminary data of the purchasing managers (PMI) for February has already been published in several European countries. What stood out:
  • The French HCOB PMI services increased to spasm to 44.5, there are 48.9 estimates and contracting compared to the previous ones 48.2.
  • European HCOB PMI services dropped to 50.7, there are 51.5 estimates and below the previous reading 51.3.
  • The German estimates of HCOB PMIS Beat, despite the component of services, which reached 52.2, there are 52.5 estimates and below reading 52.5 January.
• Preliminary data S&P Global PMI in February is not available:
  • The production sector obtained 51.6, beating the consensus 51.5 and beating 51.2 January.
  • The service sector has fallen into contraction by 49.7, a great Miss regarding respect 53.0 and far below 52.9.
• The University of Michigan also had some surprises:
  • The consumer mood indicator dropped to 64.7, there are no estimates of 67.8 and previous reading.
  • The 5-year indicator of consumer inflation expectations increased to 3.5%, above 3.3% of estimates and previous reading.
• The shares are lower, and almost all capital indicators in the US fall by 0.50%.
• The CME Fedwatch tool shows 47.5% chance that interest rates will remain unchanged at current levels in June.
• The 10-year profitability in the US trads around 4.45%, sliding down further from the highest Wednesday highest level of 4.574%.

American dollar index Technical analysis: stable for now

The American dollar index (DXY) is able to regain some space after another reduced performance this week. Euro (EUR) helps, with partial recovery in the DXY index this Friday after some disappointing PMI editions, especially from France. If the American preliminary data S&P Global PMI for February, in the afternoon, show some resistance to the country’s activities, DXY may quickly return to 107.00.

On the other hand, previous support to 107.35 has now turned into powerful resistance. In addition, the 55-day SMA for 107.96 must be recovered before recovering 108.00.

On the other hand, 106.60 (100-day SMA) and 106.52 (April 16, 2024) operated as an alert so that the buyers entered and pushed the DXY back. Next 105.89 (resistance in June 2024) will continue to persist as the next level of company support. The relative shoot indicator (RSI) on the daily chart still did not affect the sold -out barrier. Therefore, the 200-day SMA on 104.98 can be a possible result if a powerful catalyst appears.

American dollar index: daily chart