- Following yesterday’s tumultuous session, the US Dollar is trading marginally lower on Tuesday as traders await the publication of US Housing and CB Consumer Confidence Data.
The dollar started the week slightly higher after another alleged Japanese foreign currency intervention but gave up those gains when Rishi Sunak was chosen as Britain’s third prime minister, and the Euro recovered.
Market Analysis
December US Dollar Index futures are trading at 111.805, down 0.104 or -0.09% at 02:46 GMT. The Invesco DB US Dollar Index Bullish Fund ETF (UUP) closed at $30.14 on Monday, up $0.03 or +0.10%.
What Is Causing the Price Movement…
The Yen fell to 149.70 per dollar overnight before soaring to 145.28 within minutes, implying that the Bank of Japan (BOJ), working on behalf of Japan’s Ministry of Finance, had intervened once again.
The dollar held steady following the suspected BOJ intervention but weakened, briefly turning negative, after S&P flash PMI data showed US business activity contracting for the fourth consecutive month in October, the latest evidence of an economy softening in the face of high inflation and rising interest rates.
Finally, the Sterling swung when Sunak, the country’s previous chancellor, was named head of Britain’s Conservative Party, paving the way for him to become the country’s next prime minister.
US Housing Market and the CB Consumer Confidence Data
The housing market in the United States will be in the spotlight early Tuesday, with the Home Price Index (HPI) and the S&P/CS Composite-20 HPI predicted to be lower than the previous month. The housing market is deteriorating as a result of rapidly increasing mortgage rates.
The CB Consumer Confidence and Richmond Manufacturing Index surveys will follow the housing statistics.
The CB Consumer Confidence Index measures consumer confidence in the country’s economic stability. The index is based on a monthly poll of around 3,000 homes (the sample covers the entire country). The index measures a typical consumer’s financial situation, buying power, and confidence. The Conference Board, a non-profit research organization, calculates the index.
The CB Consumer Confidence survey will be widely monitored, particularly with the Fed meeting slated for November 1-2. Due to increasing inflation and rising interest rates, it is anticipated to fall from 108.0 to 105.9.
US Dollar Index: Technical Analysis of the Daily Swing Chart
According to the daily swing chart, the major trend is down. On Monday, the overall trend slowed. A move through 111.335 will indicate that the downturn has resumed. A break of 113.835 shifts the primary trend upward. 109.965 to 113.850 is the minor range. The index is now challenging the 111.908 to 111.449 retracement zone.
The immediate range is 107.450 to 114.745. It has further support at its 50% level of 111.098.
The response of traders to the minor 50% mark at 111.908 will almost certainly influence the direction of the December US Dollar Index on Tuesday.
Featured Image- Megapixl @ Alexlmx
Author Okoro Chinedu 
