DESPITE RISK-OFF MOMENTUM AND RISING YIELDS, THE US DOLLAR DECLINES

· The US dollar had a change of heart and turns red this Wednesday.

· Wednesday's economic calendar is somewhat low key.

· The US Dollar Index falls below 103.00 as the equity markets lose their tendency to be risk-averse.

The US Consumer Price Index (CPI) data came than expected, and now that the USD is strengthening, prompting concerns about when the Fed may cut interest rates. The US dollar saw an early increase in value following the release of the CPI figures, but Tuesday's increase in US markets caused the currency to lose half of its gains. The DXY US Dollar Index will close above 103.00 on Wednesday if there are no disturbance in US trading day.

The forthcoming calendar of economic statistics has nothing interesting planned. It weighs incredibly little. It's crucial to remember that Tuesday's primaries saw enough votes for both incumbent US President Joe Biden and departing US President Donald Trump to secure their respective presidential selections. That implies a rematch from four years ago on November 5.

MARKET MOVERS FOR THE DAILY DIGEST: A SLOW DAY

· Production estimates in commercial Europe are falling even more, proving to be the weak link. As soon as Finland joins NATO, armed guards will be stationed at the Finnish-Russian border, according to Russian President Vladimir Putin.

· On Tuesday, enough votes were cast for both current US President Joe Biden and former US President Donald Trump to secure their party's nominations. On November 5, they will compete for the presidency.

· Robert Holzmann, the governor of the Austrian Central Bank, warned on Tuesday that if the European Central Bank (ECB) decided to cut interest rates ahead of the Federal Reserve (Fed), there would be a serious risk of an inflated euro. At 11:00 GMT, the weekly Mortgage released it to the public. The 7.1% higher than 9.7% increase.

· The US Treasury will perform a 30-year bond auction at 17:00 GMT.

· US stocks, Dow Jones and the S&P 500, are declining as a result of the roughly 1% decline in the Nasdaq.

· The CME Group's FedWatch Tool shows that the Fed will pause at its meeting on March 20 and that are 99%.

· This week has seen a notable increase in the benchmark US Treasury Note for 10 years, which at 4.18%.

TECHNICAL ANALYSIS OF THE US DOLLAR INDEX: POTENTIAL FOR FURTHER DECLINE

Traders won't be celebrating their gains even if the US Dollar Index (DXY) is up for the third day in a row this week because the CPI figure had little impact on the DXY. Since there has been off even in front of the 55-day Simple Moving Average (SMA), it is difficult to predict what will keep the US Dollar climbing for a few more days even indicators are becoming worse.

Positively, the 200-day SMA, or 103.71, and the 55-day SMA, or 103.34, are home to level. As it breaks through, the 100-day SMA, which is increasing at 103.72, suggests a small double cap. Critical level on the stimulus that pushes the DXY higher.

The DXY was unable to verify or challenge the 55-day SMA following the release of the CPI report. It looks like there will be further fall and that it will be 102.00 is up next. Once past that milestone, there's still a leg down to the bottom of 100.61 in 2023.