The USD has been bullish since the beginning of this year, as consumer inflation kept surging higher while the FED turned massively hawkish. But, since late September the sentiment has improved somewhat in financial markets, as inflation starts giving signs of slowing down and the FED starts to give some dovish signals of slowing down and probably pausing rate hikes soon.

Although last week the sentiment turned negative again as China continued with rate hikes, hurting the risk sentiment. The US Dollar sentiment is very much tied to broader market sentiment i.e. risk mood as we look towards the end of the year, since the Buck is the only safe haven left. All eyes are on how the data, particularly inflation, will impact the Fed outlook and appetite for the central bank to keep raising interest rates going into next year. As such, it’s vital to stay connected to what may influence the above sentiment and at this stage, economic data releases are of utmost importance.

Main Economic Events for the USD

• 23 November – November FOMC meeting minutes **
• 2 December – US November non-farm payrolls report *
• 9 December – US November producer price index (PPI) **
• 13 December – US November consumer price index (CPI) ***
• 14 December – December FOMC meeting decision, statement, economic projections ***
• 15 December – US November retail sales *

USD DXY Index Daily Chart – Is the USD Resuming the Downtrend Again?

Buyers couldn’t even push the price to moving averages