DXY

As long as this correlation holds, traders can get clues as to where Gold may be headed based on the direction of the DXY.

This was the unofficial pivot the markets have been waiting for.

Based on today’s FOMC Minutes it appears that the Fed wants to hike rates at a slower pace in December than it did in November.

Whilst traders remain net-long the US dollar, around $7 billion of net-long exposure was unwound last week alone.

The dollar caught a bid following hawkish comments from two Fed members late in the US session, which leaves the potential for a follow-through today.

US Dollar bears may be looking for higher levels to sell, while EUR/USD bulls may be looking for better levels to buy.

Once it was discovered that the missiles were from Ukraine anti-defense, USD/PLN quickly returned to prior levels.

Hopes are high that we’ll see core CPI data for the US soften slightly, but with the weaker dollar holding above key support it leaves room for gains with a slight ‘beat’.

With the Fed raising 75bps at its September meeting, the FOMC Minutes noted that the risks of doing too little outweighed the risk of doing too much.

With the Fed raising 75bps at its September meeting, the FOMC Minutes noted that the risks of doing too little outweighed the risk of doing too much.

On the eve of a key US inflation report, the Fed may be glad to see 1-year inflation expectations fall. But the caveat is that so do income expectations.

On the eve of a key US inflation report, the Fed may be glad to see 1-year inflation expectations fall. But the caveat is that so do income expectations.

Will USD/CAD take out the immediate resistance and continue higher? Not only will it depend on how hawkish the BOC remains, but it also may depend on what the DXY does!

Will USD/CAD take out the immediate resistance and continue higher? Not only will it depend on how hawkish the BOC remains, but it also may depend on what the DXY does!

The key as to where USD/CHF goes next may be in the DXY.

The key as to where USD/CHF goes next may be in the DXY.

The DXY is moving to the 50% retracement level of the September 28th highs to the lows of October 4th. Unless there is a surprise in the markets before then, DXY is likely to sit near these levels until the data is released.