The US Dollar (USD) almost pairs back all of its incurred losses at the start of the US trading session, as traders brace for a slew of events and macroeconomic numbers planned later this week. Important datapoints to have in mind for this week are the US Consumer Price Index (CPI) numbers on Tuesday, Industrial Production on Thursday and the Michigan Consumer Sentiment survey on Friday. The main stage is reserved for Wednesday with US Federal Reserve (Fed) issuing its June interest rate decision, including the press conference from Fed chairman Jerome Powell and new dot plot projections for the coming period.
The Dollar Index (DXY) is trailing back higher after a depressed start of this trading week where the Greenback slid lower against most peers and nearly touched 1.08 in EURUSD. The DXY briefly broke below 103.25, and is now heading back to 103.50 as the US opening bell is seeing some demand for the US Dollar coming back online. Expect to see a sharp pickup in volatility his week versus last week as each economic datapoint will either confirm or contradict the view on the market where the US Dollar should be, and the DXY bound to see volatility pick up as this week gets underway.
