The US Dollar (USD) is trading sideways on Monday, with the US Dollar Index (DXY) hovering around 103.00. The market is awaiting the release of key economic data and Federal Reserve speeches later in the week.
Key Factors:
- Quiet Markets: The US bond market is closed today due to Columbus Day, limiting market activity.
- Fed Speeches: Several Federal Reserve officials are scheduled to speak this week, providing potential insights into the Fed’s monetary policy stance.
- Economic Data: The release of economic data, such as the US Producer Price Index (PPI) and the FOMC minutes, will be key events for the market.
Technical Analysis:
- Rangebound Trading: The US Dollar is trading in a narrow range, with potential support and resistance levels identified.
- Upside Potential: A break above 103.18 could lead to further gains, with potential targets at 103.34, 103.76, and 103.99-104.00.
- Downside Support: Key support levels are at 102.03, 100.62, 100.16, and 99.58.
Overall Outlook:
The US Dollar is likely to remain volatile, influenced by economic data, Fed speeches, and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.