• Greenback on the backfoot on Tuesday, while the trade euphoria of USA-china disappears quickly.
• Traders see the April CPI edition in the USA, they do not really show inflation signals after the day of liberation.
• American dollar index back to 101.50 after a failed level of 102.00.

. American dollar Index (DXY), which follows the efficiency of the American dollar (USD) compared to the six main currencies, corrects to 101.50 before the US trading session on Tuesday. Partial pairing of Monday profits appears when traders become cautious in the absence of details about the recent trade agreement between China and United States (US). In addition to cutting the tariffs, no dates or topics were set, asking questions about what was discussed, as in the case of a trade agreement in the UK from Thursday.

Meanwhile, on the front of economic data, the release of consumer prices in the USA (CPI) in April became basically as expected. For now, the fear that inflationary shock has not materialized and sees traders carefully considering the possibility of reduction of rates from the federal reserve. Night, Federal reserve (Fed) President of the Chicago Bank Austan Goolsbee warned that even the current tariff level would still have an inflation impulse, said the New York Times. This theory does not seem translated into the April numbers of CPI yet.

Daily Digest Market Movers: Not yet

• On Monday, President Trump attacked the European Union (EU), saying that the US has an advantage in professional discussions with the EU. “The European Union is more nasty than China in many respects. We just started with them. We have all the cards. They treated us very unfairly,” said Trump in the White House.
• At 10:00 GMT National Federation of Independent Business (NFIB) has published its business optimism indicator for April. The actual number reached 95.8 compared to the previous 97.4. The expectation concerned 94.5.
• Data on the consumer price index in April the USA was not so shocking:
• • The monthly CPI headline was 0.2%, lower than 0.3% expected and away than disinfectant -0.1% in March. The annual number was 2.3% compared to the previous 2.4%.
  • The monthly CPI cores also brought 0.2%, there is simply no estimates of 0.3% and a touch of 0.1% higher in March. The annual number is to remain unchanged at 2.8%.
• Actions in the USA gather nearly 1% with a second sigh with relief, this time on US inflation, which did not come up with control in April.
• The CME Fedwatch tool shows the chance to lower interest rates by the Federal Reserve in June to 8.2%. In addition, the decision of July 30 sees the chances of lower levels than the levels present at 38.6%.
• 10 years of profitability in the US trad around 4.47%, and traders consider possible factories of the rate reduction for the FED after these constant CPI numbers.

American dollar index Technical Analysis: Foot gap problems

Warning lights flashing on Tuesday for the American dollar index from a pure technical point of view. The fact that DXY was not able to break 102.00 and closed below an significant technical level 101.90 opens the door to get a pointed withdrawal back to 100.00. USA Cpi The release later on Tuesday may be necessary to extend the rejection with a weaker bonfire or exceed it much above 102.00.

On the other hand, DXY flirts with technical rejection compared to 101.90, which acted as a key level throughout December 2023 and as a basis for an inverted straightforward medium movement on the grate (H&S) in 102.29.

On the other hand, the previous resistance at 100.22 acts as forceful support, and then 97.73 near the lowest level of 2025. Below the relatively slender technical support is 96.94 before it looks at the lower levels of this up-to-date price range. They would be on 95.25 and 94.56, which means that fresh falls cannot be seen from 2022.

American dollar index: daily chart

(This story was improved on May 13 at 13:04 GMT to say that the annual inflation header is 2.3% instead of 2.4%).