US Dollar Index Stuck Despite Hawkish Speeches from Fed Policymakers
The US Dollar Index has been stuck near the 99.00 mark despite two hawkish speeches from Federal Reserve policymakers.
Two of the three speakers were hawkish, but their words did not move the currency pair, which remains about 2.6% below its June peak and below a rolling 50-day Exponential Moving Average (EMA) near 100.00 and a flat 200-day near 99.75.
The index was expected to break out due to the hawkish tone, but instead it remained unchanged in the session that followed.
This is not the first time this has happened; in July, the dollar broke to 99.75 after a similar speech, but it did not hold.
The US Dollar Index is made up of several currencies, including the Euro and Yen, which carry significant weights in the index.
The Euro area composite Purchasing Managers Index (PMI) printed its strongest reading since November, while the Bank of Japan shows no sign of walking back its deposit rate at 2.25%.