We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • European Opening Calls fromIG: #FTSE 7335 -0.41% #DAX 13222 -0.46% #CAC 5900 -0.34% #AEX 597 -0.38% #MIB 23672 -0.46% #IBEX 9262 -0.48% #STOXX 3697 -0.40%
  • 🇪🇺 EUR German Consumer Price Index EU Harmonized (YoY) (OCT F), Actual: 0.9% Expected: 0.9% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2019-11-13
  • 🇪🇺 EUR German Consumer Price Index (YoY) (OCT F), Actual: 1.1% Expected: 1.1% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2019-11-13
  • #Euro Forecast: #EURGBP Broke Month-Long Range. What Next? https://www.dailyfx.com/forex/technical/home/analysis/eur-gbp/2019/11/13/Euro-Forecast-EURGBP-Broke-Month-Long-Range-What-Next.html
  • Heads Up:🇪🇺 EUR German Consumer Price Index EU Harmonized (YoY) (OCT F) due at 07:00 GMT (15min), Actual: N/A Expected: 0.9% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Heads Up:🇪🇺 EUR German Consumer Price Index (YoY) (OCT F) due at 07:00 GMT (15min), Actual: N/A Expected: 1.1% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2019-11-13
  • The $USD enjoyed support from haven demand through most of 2019. Investors may now be attracted by its yield advantage as global market mood improves. Get your market update from @IlyaSpivak here:https://t.co/VqM4kinKYJ https://t.co/RG4RwLF6ps
  • Very interesting to see #Yen weakness despite broad declines in Asia stocks Wednesday, #SP500 futures are notably lower. Bond yields are on the rise (AU, NZ) after the #RBNZ rate hold. Seems like this may be a yield story amid 2020 #Fed rate cut bets also fading, fueling carry? https://t.co/34upnBTnTX
  • Here is my trading video for the coming trading session: '$USDJPY and S&P 500 Due a Break as Market Shifts from Trump to #Fed's Powell' https://www.dailyfx.com/forex/video/daily_news_report/2019/11/13/USDJPY-and-SP-500-Due-a-Break-as-Market-Shifts-from-Trump-to-Feds-Powell.html?CHID=9&QPID=917719
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.56%, while traders in France 40 are at opposite extremes with 86.36%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oxWrEM6VSB
USD Graphic Rewind: Dollar Index Keeps Climbing as Euro Sinks; Maintain Bullish Outlook

USD Graphic Rewind: Dollar Index Keeps Climbing as Euro Sinks; Maintain Bullish Outlook

2011-05-16 06:49:00
Jonathan Granby,
Share:
USD_Graphic_Rewind_body_dxy5.png, USD Graphic Rewind: Dollar Index Keeps Climbing as Euro Sinks; Maintain Bullish Outlook

Created using Bloomberg

The dollar index continues to provide signs of encouragement to those of us who have been calling for a basing out of the dollar index and a period of US dollar strength. On going weakness in global equities and commodities is helping to propel the buck higher even as the euro sinks amid a resurgence of EMU debt related fears. These two catalysts combined has been helping the index climb past initial resistance levels and confirm a short-term base. As we near the 76.00 level the index faces it first major hurdle, between the 76.00 and 77.00 levels trade may turn more choppy and direction more uncertain but if the index can push through this region then we can look higher toward 79.00 and even the psychologically important 80.00 level.

We continue to watch longer-term charts, weekly and monthly charts, as we search for longer-term confirmation of the dollar rebound. Since we hold a bullish USD outlook for 2011 against almost all major currencies we are watching this period of strength in the buck very carefully, cautiously optimistic that our forecasts will be correct.

Just to remind readers we see fundamentals as being the key driver of price action over the entirety of 2011, with US fundamentals continuing to improve at a slow but steady rate while the EMU is plagued by a debt crisis that wont go away, Japan suffers at the hands of a natural disaster, only the UK looks on a similar path to the US. The Federal Reserve has been much more accommodative in its policy and attempts to continue supporting the recovery and this has hurt the buck early in 2011 while the ECB with its inflation-driven mandate has been more eager to tighten policy. This we believe we also finally be overlooked since when the Fed does start tightening policy the potential upside for the buck is much greater and any further tightening by the ECB will only serve to hurt its weaker nations more, worsening the debt crisis. Therefore, as the market comes to terms with the fact that yield differentials aren’t the be all and end all and refocuses onto fundamental strength the USD is well positioned to make significant gains.

Written by Jonathan Granby, DailyFX Research Team

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.