Traders in the longer term focus on the 200-day advancing average on 104,990. This means that they expect more weakness, which means that they want to sell the current rally.
Traders must also look for increased volatility because we are on a news -driven market.
At 15:11 GMT, the US Dollar Index 108.182 is traded, an increase of 0.239 or +0.22%.
Inflation data in Focus
The Bureau of Economic Analysis reported that the price index of the personal consumption expenditure (PCE) in January increased by 0.3% and increased by 2.5% on an annual basis, compared to 2.6% of December. The Kern-PCE, which excludes food and energy and is closely monitored by the FED, also rose by 0.3%month-over-month and was demolished annually to 2.6%, against an upward revised 2.9%. These lectures met the expectations of economists and suggested that while inflation is relaxed, it remains sticky above the purpose of 2% of the FED.
This year, market participants remained 61 basic points of tariff reductions, whereby the first reduction was not fully expected until July, according to LSEG data. Peter Cardillo, Chief Market Economist at Spartan Capital Securities, noted that although inflation showed cooling, the Fed could experience a dilemma, because broader economic indicators indicate a slowing economy.
Tarif threats weigh on sentiment
Investor Sentiment was also put under pressure by renewed tariff threats by US President Donald Trump. Trump announced that 25% rates for import from Canada and Mexico would come into effect on March 4, earlier than previously indicated. Extra 10% tasks on Chinese goods and proposed 25% rates for importing the European Union added to market jits, so that the fear of an escalating global trade war is revived.