U.S. Dollar Index Corrects Ahead of Central Bank Decisions
2023.06.12 04:58
I hope you all had a restful weekend. This week is expected to be quite eventful, especially after a relatively slow previous week. We have several central bank policy decisions lined up, with the Federal Reserve meeting on Wednesday, the European Central Bank (ECB) on Thursday, and the Bank of Japan (BoJ) on Friday. In terms of important data releases, we’ll be closely watching the US Consumer Price Index (CPI) tomorrow, followed by the Producer Price Index (PPI) on Wednesday.
These data points will provide valuable insights into the Fed’s potential actions. The market will be eager to discern whether the Fed will pause its current hiking cycle or choose to continue raising interest rates, possibly even surprising us with more hikes akin to the recent moves by the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) last week.
From an Elliott wave perspective, I would not be surprised if USD will see more strenght as shows only A-B-C down from recent highs. Ideally, that’s a correction within uptrend, so , which is the weakest, can see more downside early this week, while strong currencies, like AUD, CAD and NOK, can possibly see just a pullback.
