The US dollar trades at small loss following mixed Michigan print

Before the first Fed meeting in two weeks, the US dollar is trading at a slight loss in a fragmented market, leaving traders in the dark. The Dollar Index opened on Friday below significant resistance after closing above it on Thursday.

Since volatility increased earlier this week, the dollar has been consolidating with lower highs and higher lows. It will be challenging for the Greenback to rise much because traders have merely postponed their expectations for a rate drop until May.

On the economic front, the University of Michigan figures could not trigger a substantial breakout either way. The door is open for a rate cut, though more needs to be done on housing inflation. Inflation data will dictate the path forward on rates.

US San Francisco Federal Reserve member Mary Daly will be the last Fed speaker before the blackout period from the Fed takes place ahead of its first interest rate decision for 2024 at the end of January.

The benchmark 10-year US Treasury Note remains steady at 4.13%, making it a five-day winning streak. The dollar is caught between a rock and a hard place on the charts, as traders only have rebalanced their bets for an initial rate cut by the Fed from March to June.