Highlights

  • Dollar reaches a high of 103.495 thanks to Fed observations.
  • Inflation worries are highlighted in the July Fed minutes.
  • U.S.-Japan rate differences cause the yen to decline.
  • Strong U.S. Dollar Amid Inflation and Interest Rate Dynamics


On Thursday, the U.S. dollar showed its strength by reaching a high of 103.495 before reversing course later in the day. Mixed U.S. Treasury yields and new information from the most recent Federal Reserve minutes, which sparked concerns about inflation and the trajectory of interest rates in the future, were the main drivers of this volatility.

The US economy’s resilience challenges interest rates, as data shows a rise in single-family house construction and factory production in July, highlighting the strong American economic system despite high borrowing rates.

The Federal Reserve’s cautious inflation approach and strong US economy provide an optimistic outlook for the dollar, with the yen facing difficulties and UK attention.

Technical View
The DXY’s 4-hour price is below its 4-hour level, indicating a modest short-term bearish sentiment. However, it is above the 200-4H and 50-4H moving averages, indicating a mid-to-long-term positive trend. The 14-4H RSI at 55.00 supports this bullish outlook. Resistance may arise when the price approaches the primary resistance range of 103.300 to 103.460. Overall, the trend suggests a bullish outlook for DXY.

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