US Dollar Index: DXY Falls To 101.00 As Investors Anticipate Fed Chair Powell's Speech And US PMI Data

US Dollar Index (DXY) reaffirms its intraday low near 101.00 as it retreats from its eight-day high and reflects the market's positioning ahead of this week's top-tier data/events during Asia's early Monday session. In doing so, the dollar index against six major currencies posts its first daily loss in five days, after reversing from the lowest levels since April 2022 over the previous week.

In spite of the fact that US housing data and regional manufacturing indices were mostly negative over the past week, the Retail Sales Control Group for June allowed the DXY to rebound from a 15-month low and post its first weekly gain in three weeks.

Previously, the optimistic readings of the University of Michigan's (UoM) Consumer Sentiment Index and consumer inflation expectations for July assisted the dollar in overcoming its pessimistic bias.

Notably, the US Consumer Price Index (CPI) and Producer Price Index (PPI) for June joined the first below-expectations Nonfarm Payrolls (NFP) in 15 months to hint at the Federal Reserve's (Fed) policy reversal past July and sink the US Dollar.

Consequently, the last improvement in US Retail Sales appears less convincing, and this week's top-tier US data, as well as the announcement of the Fed's monetary policy meeting, will be crucial for direction.

The intraday movement of the US Dollar Index (DXY) will be determined by the preliminary readings of the US S&P Global PMIs for July. However, the first readings of the US Gross Domestic Product (GDP) for the second quarter of 2023 (Q2) and Fed Chairman Jerome Powell's speech will be closely watched for unambiguous direction. It should be noted that the Fed's 0.25 percent rate is almost a foregone conclusion; therefore, the DXY supporters will require hints of additional rate increases from the US central bank in order to maintain control.