Dollar Index #DXY Analysis

On Wednesday, March 9, the dollar index closed down 1.14%. Investors are trying to be optimistic about the prospects for an end to Russia's special operation in Ukraine, which has caused major reversals in markets around the world. I don't know where such optimism comes from, but the focus of investors' attention has shifted to the ECB meeting and the US inflation report.

The rebound was sharp, but so far the value of the index is above the support of 97.75. Two important events for the dollar and the euro are scheduled for today. Lagarde needs to acknowledge that inflation will not come down in the coming months. Bullish notes should be expected from the ECB. If the support fails, then we should expect the dollar to continue its downward movement.

Inflation is expected to increase in February. Investors are waiting for the US Federal Reserve to raise rates by 25 basis points. In theory, the market has already taken everything into account in prices, so the dollar can still sag on inflation. Follow Lagarde's performance. It can swing the euro / dollar and, accordingly, the dollar.

Major Wednesday Events

— US stocks closed higher (S&P500: +2.57%). Buying interest in depreciated stocks was reinforced by a 19% pullback in oil prices, the US dollar index, gold prices and Treasury bills. Among the sectors of the S&P500, technology and financial stocks were in the lead, while the energy and utilities sectors were in the red.
— Bitcoin jumped to .$42,594 after Yellen’s statement that the States were not going to establish tight control over the cryptocurrency sphere appeared and was subsequently removed from the Treasury Department’s website.
Biden instructed the government to look into the digital dollar and other crypto risks.
— The leaders of Saudi Arabia and the Emirates have refused telephone conversations with Biden.
— The United States imposed a ban on the purchase of Russian energy resources.
— Russia has abolished VAT on gold bars for individuals.