American dollar settings for us CPI among geopolitical headlines

American Dollar trades flat and stabilizes after a day off on Tuesday.
Traders are preparing for the February release of CPI in the USA on Wednesday.
The American dollar indicator is located in the middle of 103.00 after the key level is reflected.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to six main currencies, trades flat and stabilizes on Wednesday, while traders are waiting for the issue of consumer prices of the United States (CPI) for February. The sight of the consensus is that monthly and annual indicators based on data and header inflation data should slightly alleviate from previous readings. This view of the consensus will be an fascinating match with forecasts of analysts and economists who have impatiently released comments in the last few weeks that US President Donald Trump’s tariffs are inflationary.

On the geopolitical front, China again promised to take revenge on US tariffs. Meanwhile, Europe is to spend remedies on April 13, the European Union leader (EU) Ursula von der Leyen said on Wednesday. Night headlines appeared in the war in Ukraine-Russia, in which the truce is suspended, after Ukraine agreed to the US concluding contract. The ball is now in the Russian court to support or refuse it.

Daily Digest Market Movers: Last CPI as an anomaly

At 12:30 GMT, the American consumer price index (CPI) from February will be published:
- The monthly header inflation is expected to facilitate 0.3% with 0.5% in January. Earlier, the core inflation facilitates 0.3% with 0.4%.
- Annual header reading is expected to ponderous down to 2.9% from 3.0% in January. The core meter is to soften up to 3.2% from 3.3% in the previous month.
- A much more gentle reading of inflation data should augment the rates of the Federal Reserve (FED) and cause another decrease in the American dollar.
Around 17:00 GMT, the Treasury of the US treasury will be at the 10-year notes auction.
At 17:35 GMT, President of St. Louis Fed, Alberto Musale, will speak at the Nabe Economic Policy conference in Washington
Actions enjoy a great sigh with relief with a weapon suspension agreement on the table for Ukraine. In Europe, all indicators have increased by over 1%.
The CME Fedwatch tool designs 97.0% chances for no change in interest rates at the upcoming FED meeting on March 19. The chances of decreasing the rate at the meeting on May 7 are 37.6% and 81.7% at the June meeting.
10-year income in the US trads around 4.27%, discounts of almost five months of the lowest level 4.10% printed on March 4.

Index Dollar Index Technical Analysis: not a one -day event

The American dollar indicator (DXY) is still in the face of potential sales pressure because there are fears of recession. Traders are concerned about the influence of tariffs and uncertainty on the US economy. Softly reading inflation can assist to detach the fear of recession, although it would still cause a weaker American dollar with growing federal reserve reduction factories and reducing the difference in rates with other countries as the main drivers.

The risk of growth is the fear of rejection in 104.00, which can cause a greater slowdown. If the bulls can avoid it, look for a enormous sprint higher towards the round level of 105.00, with a 200-day straight movable average (SMA) at 105.03. After breaking this zone, constant levels, such as 105.53 and 105.89, will appear as hats.

On the other hand, the round level of 103.00 can be considered a bear in case we ponderous down again, and even 101.90 is not unthinkable if the markets are even more surrendering in their long -term American dollar farms.

American dollar index: daily chart