Forex
Home›Forex›Major Pairs›Dollar index rebound stalls below 200-day SMA near 99
Dollar index rebound stalls below 200-day SMA near 99
Investors are waiting for the US PCE Price Index and the Jackson Hole summit, while strategists at BNY say cross border US exposure has stabilized.
The US Dollar Index is showing only marginal gains as it attempts to recover from three month highs, but it is struggling to extend the bounce past the 200 day simple moving average, which is just above 99.0.
FXStreet notes that investors are likely keeping volatility subdued as they await the US Personal Consumption Expenditures, or PCE, Price Index later Wednesday and the Jackson Hole summit later in the week to help guide dollar related decisions.
BNY strategists cited by FXStreet said overall US exposures have stabilized, with non US domiciled investors no longer pushing to further reduce exposures, and that outright FX hedges measured by cross border dollar holdings have been largely unchanged over the past two weeks.
On the chart, FXStreet says the Dollar Index has upside capped below 99.15, while the bearish setup remains, with the Relative Strength Index, around 34, and MACD below zero, and a break above the 200 day SMA plus prior support between 99.25 and 99.40 would be needed to improve bullish confidence.
Latest closeDollar index 99.64 ▼0.3%