Doing The DXY Dance!

The dollar index has a very interesting turn of the year pattern. Heading into year and the dollar sees pronounced weakness from a seasonal perspective but in contrast, we see dollars strength to start the year from a seasonal perspective.

The DXY CPI Reaction

On November 14, US CPI inflation data is coming out and it's widely anticipated to come in lower than the prior reading with the headline at 3.3% and the core in line with the prior reading of 4.1% year-on-year now there is intense focus on US inflation because markets are trying to assess whether the Federal reserve has indeed finished hiking interest rates if they have finished hiking interest rates that could signal another leg higher in US equities as well as the beginning of a down trend for the heavily bought US dollar.