dollar index

US Open Note – Stocks resume gains; oil pushes higher

Posted on February 2, 2021 at 1:59 pm GMT

Dollar, stocks and oil advance even higher One of the main highlights today is the rally in the US dollar, which is still moving higher, near 105.00 versus the Japanese yen. The dollar index is slightly up, while US stocks were re-energized as investors awaited a slew of earnings from corporate America including Exxon Mobil, Amazon.com and Alphabet. The US economy will return to pre-pandemic levels even without another shot of stimulus, announced a study of the Congressional Budget Office. This will endorse the Republicans’ that there is no need for one [..]

US Open Note – Dollar advances higher, euro dips

Posted on February 1, 2021 at 1:56 pm GMT

Next US relief bill still in focus; Dollar and silver surge One of the major highlights of the current week is the effort to pass the next relief bill in the US. Ten Republican Senators have drawn up a $600 billion alternative to President Biden’s $1.9 trillion proposal. The dollar index is 0.32% up today and dollar/yen has a noteworthy upside rally for the fourth day in a row, heading towards 105.00. US stocks reversed higher again while silver surged by 8.62% [..]

Technical Analysis – US Dollar index holds near 32-month trough; strongly negative

Posted on December 8, 2020 at 1:49 pm GMT

The US dollar index has been in a significant bearish tendency since March 3 and last week the price posted a fresh 32-month low of 90.42. Looking at momentum oscillators on the daily chart though, they suggest an upside pullback on price. The stochastic oscillator created a bullish crossover within its %K and %D lines in the oversold territory, while the MACD is flattening beneath its trigger and zero lines. Further declines may be on the cards if the index [..]

With a vaccine on the horizon, what’s next for gold? – Special Report

Posted on November 19, 2020 at 10:15 am GMT

A combination of cheap money policies and runaway government spending propelled gold prices to new record highs earlier this year, but the metal has been trapped in a range for three months now, and the burning question is whether bullion’s best days are behind it now that a vaccine is on the radar. Maybe not. The ‘reflation’ trade could dominate next year, and central banks are unlikely to allow bond yields to move higher from here, setting the stage for [..]

Fed meeting: Justifying the paradigm shift – Forex News Preview

Posted on September 15, 2020 at 2:06 pm GMT

The Fed will conclude its policy meeting at 18:00 GMT Wednesday, ahead of Chairman Powell’s regular press conference half an hour later. The central bank is certain to use this meeting to explain its new inflation-overshooting regime in more detail. What is less certain is whether it will also deliver new measures to lift inflation. Considering the strength of recent data, there’s little urgency to do so. Policymakers can afford to wait until after the US election, which may give [..]

US inflation data: Keeping the Fed in check – Forex News Preview

Posted on September 9, 2020 at 3:04 pm GMT

The latest CPI numbers out of the US will hit the markets at 12:30 GMT Friday, and forecasts suggest inflation picked up some steam. If that is the case, then market expectations for any Fed easing at next week’s policy meeting might fade entirely, helping euro/dollar to extend its correction lower – especially now that the ECB is actively talking down the euro. In the bigger picture, whether the stock market sell-off continues will be crucial too. ECB: The dollar’s [..]

‘King dollar’ falls from grace, growth concerns to blame? – Special Report

Posted on July 30, 2020 at 11:34 am GMT

The world’s reserve currency took a beating lately, as the resurgence of infections in the US painted a darker outlook for the nation’s economic recovery and sparked expectations for more action by the Fed. But FX is a two-way game, and the dollar’s downfall wouldn’t have been so sharp without better news out of Europe bolstering the euro. Is this just the beginning of a larger rally in euro/dollar that is predicated on Europe outperforming the US? It seems so, [..]

Week Ahead – Vaccine enthusiasm vs faltering recovery

Posted on July 17, 2020 at 11:30 am GMT

It’s a quiet week as far as scheduled events go, with the main highlight being the EU summit about the recovery fund, which exposes the euro to weekend risk. What will truly drive markets though, is the ongoing clash between hopes for a virus vaccine and worries that the economic recovery is ‘levelling off’. It’s a close call, but the market’s inability to really push higher even after promising vaccine news, combined with the Fed’s balance sheet shrinking, are ominous [..]

Powell testimonies and US retail sales to set market tone – Forex News Preview

Posted on June 15, 2020 at 2:20 pm GMT

In America, important events begin early this week. On Tuesday, we get retail sales data for May (12:30 GMT), ahead of Fed Chairman Powell’s semi-annual testimony before the Senate (14:00 GMT). Powell will also appear before the House of Representatives on Wednesday (16:00 GMT) and his Q&A sessions with lawmakers on both occasions could be crucial for the dollar and risk sentiment. In the bigger picture, the main driver for markets will be how quickly US virus cases keep rising. [..]

Technical Analysis – US dollar index near 17-year high as rally accelerates

Posted on March 19, 2020 at 8:43 am GMT

US dollar index futures (June delivery) exploded higher in recent weeks, as the global pandemic crisis has ignited a dollar liquidity shortage. The price is now trading at three-year highs, with the structure on the weekly chart consisting of higher highs well above the 50- and 200-week moving averages (MAs), which posted a ‘golden cross’ in mid-2019. Hence, the picture is positive, and a weekly close above the almost two-decade high of 103.80 could add more gasoline to the rally. [..]

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