DXY

US Open Note – Dollar back to gains despite calm day; euro steady

Posted on February 8, 2021 at 2:05 pm GMT

Dollar records some gains; US stocks at record highs In a quiet day, the major theme is the inflation expectations in the US that continue to rise. Treasury Secretary Yellen is asking for a larger stimulus package to bring the economy back to full employment. The dollar seems ready to resume its recovery. The US dollar index is moving marginally up, while dollar/yen is approaching the 105.70 level again, hitting the 200-day simple moving average (SMA). In the stock market, an index tracking global bourses met another all-time [..]

US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]

US Open Note – Dollar’s rally slows down; euro loses ground

Posted on February 3, 2021 at 2:15 pm GMT

US dollar advances marginally; ADP employment in surprise jump In the United States, a relief package of $1.9 trillion may be a good sign for the economy, providing significant stimulus without overwhelming the market with unnecessary bond issuance. The release of the ADP employment data will give some clues for the non-farm payrolls report on Friday. The report surprised as private payrolls increased by 174K in January, beating the estimates of an increase of 49K, and recovering from a downwardly revised 78K decline in the previous month. The dollar index is [..]

Technical Analysis – Dollar index registers its worst year since 2017; eyes on 90.00 level

Posted on December 16, 2020 at 2:50 pm GMT

The US dollar index (futures) had one of its worst years since 2017 despite the impressive rally to a 3 ½-year high of 103.79 in March. The index is set to post a yearly loss of around 7.0% and unless the 90.00 barrier puts breaks to the sell-off, the market could depreciate towards the 2018 troughs registered within the 88.88 – 88.40 zone. This is also where the 61.8% Fibonacci of the 2013 – 2017 upleg is placed, hence it [..]

Biden’s Trumpism over US-China trade war – Special Report

Posted on November 17, 2020 at 4:07 pm GMT

Trump’s presidency opened several fronts of confrontation between the United States and other key global economic powers, instantly increasing volatility in the markets as traders love to trade. With Biden ready to pick up the torch now, questions are arising over whether he could raise the flag of peace and build stability. However, his recent political shift suggests that the “America first” nationalism may not be easily replaced, and some battles may not see a ceasefire soon. No majority, no control Without majority in the [..]

Technical Analysis – Dollar index slumps from one-month high; tests key support area

Posted on November 3, 2020 at 11:59 am GMT

The US dollar index (December futures) sharpened its pullback from a one-month high of 94.28 on Tuesday, landing near the 20-period exponential moving average (EMA) in the four-hour chart. The 50% Fibonacci of the 94.77 – 92.43 downleg and the 50-period EMA are also strongly supporting the market in the same neighborhood around 93.60, providing an opportunity for a rebound and preventing an outlook downgrade at the same time. That said, the negative momentum in the MACD and the weakening [..]

Technical Analysis – Dollar index aims for a bullish trend reversal

Posted on September 24, 2020 at 9:53 am GMT

The US dollar index (futures) is finally showing signs of a trend reversal after a six-month period of depreciation that pushed the price as low as 91.72 from 103.79 in March. Bullish pressures gained significant momentum this week, posting a higher high above the 93.60 resistance and the 20- and 50-day simple moving averages (SMAs) and hence, violating the downward pattern. Some consolidation cannot be excluded in the near-term as the price is currently testing the 23.6% Fibonacci retracement of the recent [..]

Are we chasing inflation ghosts? – Special Report

Posted on September 11, 2020 at 1:00 pm GMT

The Fed said last month that it will allow inflation to run above its 2% objective for some time without hiking rates until average inflation hits that level. While the wording of this new strategy is seen as a move to convince markets that monetary policy will remain accommodative for longer, it has at the same time raised questions about if, how, and when prices will run hot. Perhaps, influencing expectations was the Fed’s goal in the first place. Why [..]

Could Nonfarm payrolls be a wake-up call for dollar bulls? – Forex News Preview

Posted on June 4, 2020 at 10:29 am GMT

The cocktail of violent protests across US major cities and a rising risk appetite upset the dollar and let other major currencies collect sizeable gains for more than a week now. On Friday at 12:30 GMT the famous nonfarm payrolls report may not be an ideal one, but it could add some floor under the buttered greenback if the data indicate that the worst of job losses is likely behind. The worst could be befind us The destructive protests, which have [..]

US jobless claims, Markit PMIs and durable goods may not spook dollar – Forex News Preview

Posted on April 22, 2020 at 3:41 pm GMT

The US agenda is featuring initial jobless claims (12:30 GMT) and preliminary Markit PMI figures (13:45 GMT) on Thursday followed by durable goods (12:30 GMT) on Friday. Expectations, though, are for a neutral reaction in the US dollar. Despite the shocking expansion of Covid-19 in the US, the greenback continued to overperform against a basket of major currencies year-to-date, remaining above the 100 level although it could not steal demand from the Japanese yen due to the currency’s stronger safe-haven feature. The fact that [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms

DXY