Trade Plan for the DXY 🇺🇸 (WN37 update)

Detail on the orders placed by Jeepson Trading at eToro and 5ers

FUNDAMENTAL AND SENTIMENT SUMMARY

The Federal Open Market Committee (FOMC) of the Federal Reserve met a couple of months ago on the 27th of July and a decision was made to hike the Federal Funds Rate (Interest Rate) by 75bps from 1.50-1.75 percent to 2.25-2.50 percent which was as expected. The policy outlook is hawkish as the FOMC provided a projection in June of 3.8 percent for next year in 2023. The next scheduled meeting for the FOMC is next week on Wednesday the 21st of September.

More recently, with regards to economic indicators, the CPI rate was reported on Tuesday at 8.3 percent which was above expectations of 8.1 percent although lower than the previous 8.5 percent.

The sentiment that is presently influencing the valuations on the US Dollar is the narrative regarding fed rate hikes and how aggressive they may be. The recent inflation report coming in a little hotter than expected has raised the possibility that the Fed will take a more aggressive hiking path than had been priced in. The CME Fed Watch tool has a 75bps hike at odds of 76 percent which is up from 60 percent earlier this week. Odds on a 100bps hike are falling.

The attention of market participant traders is towards the FOMC nex week although the Michigan Consumer Sentiment today may get some focus if it comes in lower than the expected 60.0

ORDERS

The momentum on the $DXY over the micro-term looks to be resisting moves higher and may weaken as odds on a 100bps hike are falling. The short-term uptrend has no retracement created and so any fall could slip back towards the 105.0 area.

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