The Dollar is the focus of the week ahead of important economic data such as CPI and central bank rates decisions.
The Dollar starts the new week with a boost to its gains from last week. This is ahead of important economic data releases such as inflation data for November and the highly-anticipated FED Rate decision. The initial enthusiasm can be attributed the positive US Producer Price Index data released last week. This data was at 7.4% YoY in November, compared to 8.1% in previous month. In addition, Core PPI rose 6.2% YoY to 6.0% expected. Heading into the remainder of the week, investors will be eyeing November’s Consumer Price index, as it will be crucial for any bullish bias, coupled with the FED’s decision on their Interest rate, which has already been priced in at 0.50%.
Technical Analysis (D1)
The market structure has changed significantly. Price has now ceased to follow the upward trend that began in February 2022. Since then, prices have been on the decline and sellers have attained a crucial level of interest around the 104.01 The area in which the previous higher-low formed. The…