The U.S. greenback index (DXY) is not making new month-to-month lows regardless of indicators of much less tightening from the Fed!

In case you missed yesterday’s headlines, it’s best to know that the highly-anticipated U.S. CPI report confirmed the headline inflation slowing down from 6.0% to five.0% y/y in March.

In the meantime, the discharge of the FOMC’s newest assembly minutes confirmed speculations that the current banking disaster has made no less than a couple of Fed members suppose twice about their plans to aggressively tighten their financial insurance policies to rein in inflation.

So, if inflation is slowing and the Fed isn’t as hawkish because it was prior to now few months, then why hasn’t the U.S. greenback index made new month-to-month lows yesterday?

U.S. Greenback Index (DXY): 1-hour

U.S. Greenback Index (DXY) 1-Hour Foreign exchange Chart by TradingView

DXY did see a pointy selloff, however the U.S. greenback discovered sufficient help on the 101.50 April lows to stem additional losses.

Does this imply that the greenback is finished with its downtrend?

Technical evaluation is supporting an upside motion as value hangs out close to a earlier help zone.

Even Stochastic is favoring a bit of shopping for whereas it’s exhibiting an “oversold” sign on the 1-hour time-frame.

Final however not least, the 100 SMA is now above the 200 SMA, one thing that hasn’t occurred since we noticed a bearish crossover in early March.

Whereas the SMAs aren’t pointing to a directional motion but, the dearth of route may help a range-y value motion for DXY within the subsequent buying and selling classes.

With not a number of top-tier experiences to look ahead to, I’ll be protecting nearer tabs on threat sentiment.

Concentrate on international financial development and geopolitical tensions between the U.S. and China may drive merchants again to safe-havens like USD and JPY.

But when the markets dwell on the key central banks ending their tightening cycles, then we may see risk-taking that might drag DXY to new April lows.

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