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US Dollar (DXY) Outlook – Fed Chair Powell, US Inflation Data and NFPs All Near

US Dollar (DXY) Outlook – Fed Chair Powell, US Inflation Data and NFPs All Near

Nick Cawley, Senior Strategist
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US Dollar (DXY) Price and Chart Analysis

  • US Dollar respects support but remains weak.
  • Fed chair Powell will speak on inflation and the jobs market.

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Most Read: US Dollar Outlook – Will Heavyweight Data Stem the US Dollar’s Ongoing Decline?

US Federal Reserve chair Jerome Powell is set to give a speech at the Brookings Institute on Wednesday titled Economic Outlook, Inflation, and the Labor Market. The speech to the non-profit think tank comes just before the release of the latest US inflation and jobs data that will go a long way to decide the outcome of the mid-December FOMC policy decision. If Powell uses tomorrow’s platform to reaffirm that US interest rates will need to remain elevated for longer to counter stubbornly high inflation, the greenback will likely reverse its recent sell-off and push higher again. Recent hawkish speak from the Fed board member James Bullard – ‘we’ve got a ways to go to get restrictive on policy’ – may be the start of a central bank pushback against market expectations of looser monetary conditions in 2023.

The latest US consumer confidence reading is published at 15:00 GMT today, ahead of a cluster of high-importance data releases scheduled for the rest of the week.

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For all market-moving data releases and economic events see the real-time DailyFX Calendar.

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Short-dated US Treasury yields continue to edge lower and in the process are making a head and shoulders formation on the daily chart. If this pattern plays out then yields look set to move lower still, leaving the US dollar vulnerable to renewed downside.

The Head and Shoulders Pattern: A Trader’s Guide

US 2-Year Treasury Yield Daily Chart – November 29, 2022

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The US dollar’s sell-off on Monday was halted by the 200-day moving average and a zone of prior support. The daily bullish candlestick suggests that the DXY may push higher with 108 the likely first level of resistance.

Important Single Candle Patterns

US Dollar (DXY) Daily Chart – November 29, 2022

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All Charts via TradingView

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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