Examining the movement of the US dollar currency this week, in addition to evaluating the main fundamental factors based on the monetary policy of the Federal Reserve (Fed), investors also need to filter other factors that also affect the king of the currency.
Central bank monetary policy
The US dollar, which returned to weak movements at the beginning of the week, is seen again in line with expectations that the Fed is moving towards a slower monetary policy and may be ready to end previous tightening.
US 10Y Yield
However, the drop in the 10-year Treasury yield of the United States (US) to below the 3.50% level was again seen as the trigger for the decline of the US dollar earlier this week after failing to determine a clear direction during last week's trading.
USD DXY index
Continuing on today's trade (Tuesday), the movement of the US dollar was slightly neutralized again with the USD index successfully recovering from the 10-day lows hit in the Asian session this morning.
US Economic Data
In addition, investors can observe the reading of the house price index for February as well as new home sales in March in the US soon, with the main focus being on US consumer confidence data which can give an indication of the level of spending in the country.
Also US economic growth data on Thursday will be published as well as US consumer personal expenditure data (PCE index) will be measured on Friday.
All of this will be filtered and evaluated before forming a compass of direction for the US dollar's journey this week towards the FOMC meeting in early May, which is next week.
Finally, don't forget to monitor the current market sentiment to see if there are any issues that could change the flow of investment by investors and affect the trading of the US dollar as a safe-haven currency.
