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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bearish
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.39%, while traders in US 500 are at opposite extremes with 75.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wjEN7NrhgH
  • #USDKRW down with the pair trading just within the range of the uptrend. Do you think it will break this week? https://t.co/FvyNYJy701
  • Forex Update: $USD continues to weaken against its major counterparts, led by $AUD (+0.86%), while $JPY lags behind (+0.11%). https://t.co/5wayEueKCi
  • GBP/USD: cluster of recent lows around the 1.2160 level and the Tuesday’s low print at 1.2190 may act as the first level of support for the pair. Get your $GBPUSD technical analysis from @nickcawley1 here:https://t.co/yvGzi5hoQw https://t.co/9qFx1oKZsE
  • Market snapshot: - US equity futures pointing lower while #AUD and #NZD are trading higher vs USD and JPY
  • Heads Up:🇰🇷 Markit Manufacturing PMI due at 00:30 GMT (15min) Previous: 41.6 https://www.dailyfx.com/economic-calendar#2020-06-01
  • #USD, $GBP, EUR & AUD Brace for Cross-Continental Political Peril ⬇️ https://www.dailyfx.com/forex/fundamental/article/special_report/2020/06/01/USD-GBP-EUR--AUD-Brace-for-Cross-Continental-Political-Peril.html
  • 🇰🇷 Exports YoY Actual: -23.7% Expected: -22.1% Previous: -25.1% https://www.dailyfx.com/economic-calendar#2020-06-01
  • 🇰🇷 Balance of Trade Actual: $0.44B Previous: $-1.4B https://www.dailyfx.com/economic-calendar#2020-06-01
  • 🇰🇷 Exports YoY Actual: -23.7% Expected: -22.1% Previous: -24.3% https://www.dailyfx.com/economic-calendar#2020-06-01
US Dollar Rally Stalls but Uptrend to Remain in Place

US Dollar Rally Stalls but Uptrend to Remain in Place

2018-05-09 12:30:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- The US Treasury 2-year note yield hit its highest level since early-2008, while the 10-year note yield crept back above 3.000%.

- US Dollar momentum remains firmly to the topside, despite taking a breather thus far today.

- Retail traders remain net-long EUR/USD and GBP/USD, signs that they may still fall further yet.

Looking to learn more about how central banks impact FX markets? Check out the DailyFX Trading Guides.

The US Dollar (via the DXY Index) ran up to a fresh four month high earlier today before reversing course at the start of the European trading session. A quiet economic calendar did little to distract traders from the headlines regarding the US withdrawal from the Iran nuclear deal, which has seen Crude Oil move to a fresh yearly high and highest level since November 2014.

While market participants are still understanding the ramfications of the US withdrawal from the Iran nuclear deal, there seemingly has been little direct impact on risk appetite: US equity futures continue to point higher; the US Treasury 2-year note yield hit a fresh 2018 high and is at its highest level since January 2008; the US Treasury 10-year note yield move back above 3.000%; and the Japanese Yen has sold off meaningfully.

With regards to the yield aspect of the story, the continued push higher in rates is exerting itself more and more as an influence over the US Dollar again. While the greenback is taking a bit of a breather today, buying dips remains the best course of action while the 'higher yield story' is still in vague.

Add in the implied large net-short position against the US Dollar in the futures market (implied by British Pound and Euros net-long positioning), and the potential for more US Dollar upside persists in the near-term.

Price Chart 1: DXY Index Daily Timeframe (August 2017 to May 2018)

US Dollar Rally Stalls but Uptrend to Remain in Place

From a technical perspective, US Dollar bullish momentum remains strongly to the topside. Price is above the daily 8-, 13-, and 21-EMAs in sequential order, while both MACD and Slow Stochastics are trending higher. This reinforces the fundamental outlook for the US Dollar at present time is to buy dips.

Read more: US Dollar Hits Pause after FOMC, Awaits Clues for April NFP

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

--- 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

News & Analysis at your fingertips.