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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/8rwkKVigC4
  • South Africa's Eskom says the possibility that Eskom may be forced to implement loadshedding has increased as the power system is severely constrained $ZAR
  • 🇮🇹 Industrial Production MoM (MAY) Actual: 42.1% Expected: 22.8% Previous: -20.5% https://www.dailyfx.com/economic-calendar#2020-07-10
  • 🇮🇹 Industrial Production YoY (MAY) Actual: -20.3% Expected: -32.5% Previous: -43.4% https://www.dailyfx.com/economic-calendar#2020-07-10
  • 🇮🇹 Industrial Production MoM (MAY) Actual: 42.1 Expected: 22.8% Previous: -19.1% https://www.dailyfx.com/economic-calendar#2020-07-10
  • 🇮🇹 Industrial Production YoY (MAY) Actual: -20.3 Expected: -32.5% Previous: -42.5% https://www.dailyfx.com/economic-calendar#2020-07-10
  • A macro forex trading guide exploring how to trade the Euro vs the Swedish Krona and Norwegian Krone through the prism of the Core-Perimeter model. Get your market update from @ZabelinDimitri here:https://t.co/n6zwlZJmGO https://t.co/5f4f0vdUTV
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.08%, while traders in NZD/USD are at opposite extremes with 70.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/I7Yt76dYsY
  • Heads Up:🇮🇹 Industrial Production MoM (MAY) due at 08:00 GMT (15min) Expected: 22.8% Previous: -19.1% https://www.dailyfx.com/economic-calendar#2020-07-10
  • Heads Up:🇮🇹 Industrial Production YoY (MAY) due at 08:00 GMT (15min) Expected: -32.5% Previous: -42.5% https://www.dailyfx.com/economic-calendar#2020-07-10
USDOLLAR in at 6-Month High after Jackson Hole; USD/CHF Hits Target

USDOLLAR in at 6-Month High after Jackson Hole; USD/CHF Hits Target

2014-08-25 11:10:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- USDOLLAR Index at highest level since 2/7/2014.

- USDCHF opens week in 0.9160/89 target zone.

- US Dollar strength in August shouldn't surprise - it's a seasonally strong month.

The Jackson Hole Economic Policy Symposium has yielded bullish results for the US Dollar, which isn't necessarily a surprise given the recent strength of the US economy. The Citi Economic Surprise Index has risen to +4.4, its highest level since February 14, which matches the USDOLLAR Index's rise to its highest level since February 7.

The wishy-washy nature of Fed Chair Yellen's comments on Friday were of course of the academic/theoretical sense; there were no Wall Street participants at the conference. Yet even vagaries like saying 'interest rates could rise sooner than market participants expect if the labor market progresses faster' have proven enough to spark some life into Fed rate speculation.

At the present juncture, even as the US Dollar extends its bull run, it's difficult to get on board with fresh longs given the overbought nature of the current rally. Our preference is to buy dips in the greenback.

One such opportunity may arise in USDCHF, which has opened the week at its highest levels since January amid the EURUSD's slump below $1.3200. USDCHF has achieved the Sf0.9160/89 target zone from the double bottom and AB=CD patterns, suggesting that some near-term relief may be due. This could coincide with a small rally in EURUSD, which we would look to sell.

See the video above for technical considerations in EURUSD, USDCHF, and the USDOLLAR Index, as well as a more detailed look into what ECB President Mario Draghi said over the weekend that has provoked fresh monthly and yearly lows in EURUSD to start the last week of August.

Read more: Fed’s Yellen Stokes USD Rally as Labor Progress Could Incite Rate Hikes

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES

News & Analysis at your fingertips.