The US dollar index (DXY) rose on Wednesday, after seeing strong US data Consumer inflation released. The index rose to $ 94.42, which is significantly higher than this week’s high of $ 93.88.
US inflation data
Consumer prices in the United States have risen the fastest in more than 30 years as energy prices and the current supply shortfall continue.
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According to the Bureau of Statistics, the wholesale price index rose 6.2% year-on-year in October. This is the highest level since 1991. This is higher than the average rating of 5.8% per group. Wall Street Economists. CPI increased by 0.9% per month.
Meanwhile, key CPI, excluding volatile food and energy prices, rose to 4.6% in October from 4.0% in September. Again, this is a better figure than the average estimate of 4.3%.
These numbers make Americans pay significantly more for their basic needs. For example, in some states, such as California, petrol prices have risen by more than $ 4 a gallon.
This price increase is said to be due to various reasons. First, the price of crude oil has risen to levels not seen in more than seven years. This is after OPEC + maintained a policy of increasing inventory at a relatively slow pace.
Meanwhile, natural gas prices are under constant pressure due to Russian restrictions. Coal prices have also risen sharply as companies have reduced production and investment due to climate change policies.
That is why the Federal Reserve, Adopts a relatively aggressive tone as US inflation rises and unemployment falls. It has already started its property purchases gradually. So, with rising inflation, it is likely to maintain a more serious tone.
US Dollar Index Forecast
The 4-hour chart has seen the US dollar index rise sharply, offsetting some of its gains following its recent US inflation data. Overall, the index struggled to break above the key $ 94.50 resistance level. This is slightly higher than the 25 and 50 day moving average.
Significantly, it has also developed an inverted and shoulder shape. Therefore, prices are likely to rise again soon. If this happens, the next important level to look at is $ 95.
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