An analysis of the dollar's performance over the next week

An analysis of the dollar’s performance over the next week

Deltafx Admin 30 January 2023

The US dollar was flat in trading this week, forming a Doji on the weekly chart for the second week in a row. However, this trend is likely to stall this week as the economic calendar for next week is packed with important economic events, particularly data releases from the Federal Reserve on Wednesday and the Bank of England and the European Central Bank on Thursday. The NFP report will also be released on Friday, and given the Fed’s stance on Wednesday, the employment report could be even more important than expected as the FOMC looks at economic data for signs of a slowdown in rate hikes from last year.

Currently, the technical situation of the U.S. dollar index continues to show the impact of the continuation of the downward trend at the beginning of the month. On the eve of the New Year, the dollar index held the support level of 103.45, which led to a jump in the first week of January. But all this was undone on January 6, when the data on the purchasing managers’ index of the service sector fell short of expectations sending shockwaves through the markets.

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