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
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: France 40: 0.10% Germany 30: 0.06% Wall Street: 0.05% US 500: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/V5KtXKuoIP
  • I wrote the gold technical forecast for this week. The Trump-Powell talk doesn't change the analysis: 'Gold Forecast Supports Measured Swings as Support Breaks Fail to Spark Trend' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/15/Gold-Forecast-Supports-Measured-Swings-as-Support-Breaks-Fail-to-Spark-Trend.html
  • The Hong Kong Human Rights and Democracy Act is expected to be taken up for a vote in the Senate this week. The bill would require the State Department to certify once a year if Hong Kong should be allowed to keep special status under US Law.
  • RT @CVecchioFX: Similarly, when Greenspan was Fed Chairman, then-Pres Clinton also pressured him to not change policies. So, only differe…
  • RT @CVecchioFX: I was able to read Paul Volcker's memoir "Keeping at It" (https://t.co/TP4jgMHawR) last weekend. Interesting historical ane…
  • It's worth putting this Trump-Powell meeting in context. https://t.co/kJpOZ7yjMt
  • I doubt Powell intends to 'bend the knee' to steady rate cuts - much less negative rates. Nonetheless, market expectations of Fed cuts through 2020 growing ($DXY) https://t.co/JTCvBwt8hZ
  • Me in 2010 vs me now 💪 https://t.co/9m7l5K9H80
  • US Treasury Yields Update: 2-Year: 1.592% 3-Year: 1.593% 5-Year: 1.625% 7-Year: 1.723% 10-Year: 1.805% 30-Year: 2.288% $TNX
  • Trump says meeting with Chair Powell included topics including interest rates, negative rates, USD strength and the impact the USD has on manufacturing and trade with China and EU $EUR $DXY $SPX
U.S. Dollar Index Halts Three-Day Advance, Major Trends Remain In Tact

U.S. Dollar Index Halts Three-Day Advance, Major Trends Remain In Tact

2011-05-06 14:55:00
David Song, Currency Strategist
Share:

DJ FXCM Dollar Index

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9498.19

9544.50

9477.91

-0.46

106.04%

The near-term correction in the greenback was certainly short-lived as the 244K rise in U.S. Non-Farm Payrolls spurred a rebound in market sentiment, and the dollar is likely to further retrace the advance from earlier this week as risk trends continue to dictate price action in the foreign exchange market. The DJ-FXCM U.S. Dollar index shed 0.46% on Friday, with the gauge falling back from a high of 9544.50, and the USD should continue to consolidate in the week ahead as it maintains the downward trend against its major counterparts.

U.S._Dollar_Index_Halts_Three-Day_Advance_Major_Trends_Remain_In_Tact_body_ScreenShot007.png, U.S. Dollar Index Halts Three-Day Advance, Major Trends Remain In Tact

Indeed, the Australian dollar surged higher during the North American trade, rallying 1.87% on the day after moving 190% of its average true range, while the British Pound maintained the overnight advance to add 0.23% from the open. However, the euro struggled to hold its ground as European Central Bank President Jean-Claude Trichet continued to soften his outlook for monetary policy, but the recent weakness in the single-currency could be short lived as the EUR/USD maintains the upward trend from earlier this year. As the EUR/USD holds above the 78.6% Fibonacci retracement from the 2009 high to the 2010 low around 1.4430-50, it seems as though we will continue to see higher prices exchange rates going forward, and the euro-dollar may work its way back towards 1.5000 as the ECB pledges to take the appropriate steps when needed. However, the EUR/USD may face range-bound throughout the remainder of the month as the Governing Council is scheduled to release their updated forecast for growth and inflation in June, and the central bank head may look to reestablish its exit strategy in the second-half of the year as the Governing Council maintains its one and only mandate to ensure price stability.

Join us to discuss the outlook for the major currencies on the DailyFXForums

To discuss this report contact David Song, Currency Analyst: dsong@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.