It remains to be seen whether the falling Dollar Index will recover.

It remains to be seen whether the falling Dollar Index will recover.

14.02.2023

In the U.S. currency market the previous day, the U.S. dollar fell as the Dollar Index, which had been rising, dropped to 103.1. The euro rebounded from this month’s low of 1.0655 to 1.0730 against the U.S. dollar.It has moved above the 20-period moving average (MA) on the hourly chart. However, on the 4-hour chart, the 200-period simple moving average (SMA) and exponential moving average (EMA) have formed a death cross, and on the daily chart, while the price remains below the 20-period MA, the RSI is trending downward. Therefore, we should remain cautious as to whether the euro’s rebound will prove to be only temporary.

Among European currencies, the pound made significant gains against the U.S. dollar. The GBP/USD pair rose from 1.2031 to 1.2149, reaching the upper end of the range that had persisted for a week.On the daily chart, GBP/USD has been trading within a range between 1.1961 and 1.2434. With upward pressure toward the upper boundary of this range currently intensifying, it will be worth watching to see if the upward trend continues.

Today, at 4:00 p.m., the UKunemployment rate at 4:00 p.m., Swiss producer import prices at 4:30 p.m., Eurozone Q4 GDP at 7:00 p.m., the U.S. NFIB Small Business Optimism Index at 8:00 p.m., the U.S. Consumer Price Index at 10:30 p.m., and remarks by U.S. Richmond Fed President Barkin at 11:30 p.m.,Remarks by Richmond Fed President Rich, at 25:00: U.S. remarks by Logan, President of the Dallas Fed, at 25:30: U.S. remarks by Harker, President of the Philadelphia Fed, and at 28:05: U.S. remarks by Williams, President of the New York Fed.We’ll be watching the economic data releases during U.S. trading hours to see if the falling U.S. Dollar Index will rebound.