DXY is poised to make a correction

19 Eki 2023

Even in the face of unexpectedly robust retail sales data in the United States, the US Dollar Index (DXY) seems to be struggling to gather the necessary momentum for a substantial upward move, indicating a potential correction is on the horizon, with a target level of around 103.50. While today's speech by Federal Reserve Chair Jerome Powell holds significant importance, my attention is also firmly fixed on the Core Personal Consumption Expenditures (PCE) price index scheduled for release next Friday. This economic indicator will likely serve as a crucial pivot point, offering insights into the future direction of the DXY, as it reflects the Federal Reserve's stance on inflation, which has been a key factor affecting currency markets in recent times.