USDOLLAR Index Finding Footing - Will Key Data Comply?
- Economic calendar finally offers meaningful US data this week.
- Higher volatility in FX markets should have implications for your trading strategies.
The USDOLLAR Index has made meaningful technical progress today, but the finality of said progress largely determines on the outcome of today's US economic data. With market expectations for the ever-important US Advance Retail Sales report starting to turn higher, traders may have been positioning themselves for some good news about the US.
In turn, with market expectations for a Fed rate hike so low - only 4% for June - any signs that economic data is lining up with some of the hawkish commentary from the Fed is potentially a significant bullish tailwind for the US Dollar between now and June.
If you haven't yet, read the Q2'16 Euro Forecast, "EUR/USD Stuck in No-Man’s Land Headed into Q2’16; Don’t Discount ’Brexit’," as well as the rest of all of DailyFX's Q2'16 quarterly forecasts.
--- Written by Christopher Vecchio, Currency Strategist
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