News & Analysis at your fingertips.

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
Subscribe
Please try again
EUR/USD
Bullish
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
Mixed
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
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • NY Fed's GDP Nowcast model sees US Q1 GDP at 6.9% vs. 6.78% in prior week. #Fed $USD
  • Hey traders! Wrap up your week with a market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/zOiAQGMNzY
  • $EURGBP has strengthened today, rising back above the 0.8700 level for the first time in a week. The pair is trading near the highs set in mid April and late February. $EUR $GBP https://t.co/RSkMhvLQEQ
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇦🇺AUD: 0.29% 🇨🇦CAD: 0.10% 🇬🇧GBP: 0.06% 🇨🇭CHF: 0.06% 🇯🇵JPY: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OODkBySEaS
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.66% Wall Street: 0.42% FTSE 100: -0.13% France 40: -0.28% Germany 30: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0PTPoUF2Jz
  • #Gold has slipped to its lowest level since Tuesday today. After meeting resistance around 1,795 this morning, the precious metal fell back to trade near the 1,770 level. $XAU $GLD https://t.co/tOiSk0n6t5
  • Biden’s proposed tax hike sees investors unload profitable assets. Bitcoin intensifies losses, falls below $50,000. Get your $btc market update from @Daniela here:https://t.co/pkHFvFotbz https://t.co/1R7T4HpfQX
  • With the US data beating expectations, we have all of the major developed world economies reporting April PMIs with a significant improvement in economic activity for the current month. Seems only black swans and regulations can stop the train now... https://t.co/HpOW5ul5YW
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.92% Gold: -0.24% Silver: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ck2iRms5Hp
  • Heads Up:💶 ECB President Lagarde Speech due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-23
It's Still Too Early to Call a Bottom in the US Dollar

It's Still Too Early to Call a Bottom in the US Dollar

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- A potential bottoming pattern, a bullish morning doji star, formed in the DXY Index this week but has seen no follow through today.

- Likewise, EUR/USD bearish evening doji star - highlighted by a bearish key reversal yesterday - has seen little follow through today either.

- Retail trader sentiment suggests a mixed trading environment for the US Dollar through the end of the week.

Upcoming Webinars for Week of January 14 to 19, 2018

Today at 7:30 EST/12:30 GMT: Central Bank Weekly

See the full DailyFX Webinar Calendar for other upcoming strategy sessions

After a promising close on Wednesday, the US Dollar is disappointing bottom pickers on Thursday with a weak performance thus far half way through the trading day.

A bullish daily key reversal in the DXY Index yesterday, coupled with the bullish morning doji star candle cluster between Monday and Wednesday, suggested that the greenback's early-year losses may have run their course.

Price Chart 1: DXY Index Daily Timeframe (September 2017 to January 2018)

It's Still Too Early to Call a Bottom in the US Dollar

Evidently not. The US Dollar finds itself trading lower once again today, unable to generate the follow through necessary to declare that the bottoming process had truly begun. The seeds of a turnaround have been planted elsewhere, it should be noted.

US economic data has been generally outperforming expectations, with the Citi Economic Surprise Index up at +70.0. Medium-term inflation expectations, as measured by the 5-year, 5-year inflation swap forwards, are nearing their 2018 high and their highest levels since last May near 2.36%. The US Treasury 10-year yield is quickly approaching its highest level since March 2017. Accordingly, Fed funds are pricing in an 89% chance of a rate hike by March.

For now, it's too early to call the bottom in the US Dollar, but traders should be on the lookout for evidence in price action that a short-term turn could be coming soon.

Read more: Bitcoin, Cryptocurrency Market Crash on Fears of Demand Drawdown

--- Written by Christopher Vecchio, CFA, Senior 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