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US Dollar Forecast: DXY Dips to $104, Awaits Fed Speeches & Trade Balance Data

By:
Arslan Ali
Published: Feb 7, 2024, 07:52 UTC

With the Dollar Index's slight retreat and key EUR/USD, GBP/USD resistance levels in play, traders eye Fed remarks and trade balance data for cues.

US Dollar Forecast: DXY Dips to $104, Awaits Fed Speeches & Trade Balance Data

Highlights

  • Dollar Index retreats slightly, shedding 0.10% amidst a flurry of global economic updates.
  • EUR/USD and GBP/USD show modest gains, facing key resistance levels in the latest market dynamics.
  • Anticipated US Trade Balance and remarks from FOMC members could pivot currency market trends.

Economic Indicators Weigh on Currencies

The Dollar Index has seen a modest decline, trading at $104.037, down by approximately 0.10%.  In Europe, German Industrial Production unexpectedly contracted by 1.6%, a sharper decline than the forecasted 0.4% decrease. This follows a surprising surge in German Factory Orders by 8.9% and a dip in Retail Sales by 1.1%.

For the GBP, the Halifax HPI showed a stronger than expected growth of 1.3%, suggesting resilience in the UK housing market. However, the Construction PMI indicated contraction at 48.8, signaling pressures in the construction sector.

Events Ahead

US Dollar Index (DXY)

Dollar Index
Dollar Index

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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