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
Bearish
GBP/USD
Mixed
USD/JPY
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
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
Bitcoin
Bearish
More View more
Real Time News
  • US Treasury Yields Update: 2-Year: 1.640% 3-Year: 1.654% 5-Year: 1.693% 7-Year: 1.800% 10-Year: 1.886% 30-Year: 2.366% $TNX
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.63%, while traders in France 40 are at opposite extremes with 84.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Wu2NXOJMKy
  • #Dow Jones: Giving the trend the benefit of the doubt, allowing for a small congestion pattern to develop may reward traders with a platform from which another leg higher can develop. Get your technical analysis from @PaulRobinsonFX here: https://t.co/zMaDTwizgp https://t.co/h2afPQplxK
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.91% Oil - US Crude: 0.83% Gold: 0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ZBtjTRQ9ai
  • Fed Chair Powell: - Shutting down shale would not be good for US economy #OOTT
  • RT @economics: Total U.S. household debt rose $92 billion, or 0.7%, to $13.95 trillion in the third quarter — that's the 21st straight quar…
  • Trump says auto tariff decision is coming fairly soon $SPX
  • USD/CHF IG Client Sentiment: Our data shows traders are now net-long USD/CHF for the first time since Nov 06, 2019 02:00 GMT when USD/CHF traded near 0.99. A contrarian view of crowd sentiment points to USD/CHF weakness. https://www.dailyfx.com/sentiment https://t.co/o0UNN3CVSg
  • RT @fleckcap: powell- "the risk of low inflation is greater than higher [inflation]", as they print money like mad...save that quote along…
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.09% 🇨🇭CHF: 0.33% 🇯🇵JPY: 0.17% 🇨🇦CAD: -0.09% 🇪🇺EUR: -0.10% 🇦🇺AUD: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8fEFNWKtFe
US Dollar Index Shows Modest Gains despite Returning Risk Appetite

US Dollar Index Shows Modest Gains despite Returning Risk Appetite

2011-05-18 22:36:00
Michael Boutros, Technical Strategist
Share:
US_Dollar_Index_Shows_Modest_Gains_despite_Returning_Risk_Appetite_body_Picture_4.png, US Dollar Index Shows Modest Gains despite Returning Risk AppetiteUS_Dollar_Index_Shows_Modest_Gains_despite_Returning_Risk_Appetite_body_Picture_1.png, US Dollar Index Shows Modest Gains despite Returning Risk Appetite

The greenback was mixed against the majors today as a host of economic releases and central bank minutes shifted sentiment throughout the global trading day. The Dow Jones FXCM US Dollar Index started the day off weaker as it looked to test the lower bound trendline of the ascending channel dating back to April 28th. The greenback pared losses into the US open where it remained range bound for much of the session.

US_Dollar_Index_Shows_Modest_Gains_despite_Returning_Risk_Appetite_body_Picture_10.png, US Dollar Index Shows Modest Gains despite Returning Risk Appetite

The channel formation remains intact noting interim support at 9610, backed closely by the 23.6% Fibonacci retracement taken from the November 30th decline at 9590. A break below this level sees subsequent floors at 9520 and 9460. Topside targets are eyed at the 50-day moving average at 9675, followed by the 38.2% Fibonacci retracement at 9728 and 9815.

US_Dollar_Index_Shows_Modest_Gains_despite_Returning_Risk_Appetite_body_Picture_7.png, US Dollar Index Shows Modest Gains despite Returning Risk Appetite

A glance at the relative performance in the component currencies sees the pound sliding more than 0.5% on the back of weaker than expected employment data and a dovish tone to the BoE minutes. The yen remained on the defensive as increased risk appetite saw traders unwinding haven flows. Yesterday the yen was the weakest performer against the dollar on comments made by BoJ Governor Masaaki Shirakawa who warned that the domestic economy remained in a “severe” state. The aussie and the euro saw temped gains as a lack of news regarding the possibility of a “soft” restructuring saw nerves ease. The release of the April FOMC minute initially saw the greenback come off, but losses were quickly pared as the dollar continued its ascent.

Tomorrow’s economic diary sees weekly jobless claims and existing home sales data out of the US. Claims are expected to show slight improvement with a print of 420K from the previous read of 434K. Traders will be closely eying existing home sales after a dismal report earlier in the week on April housing starts. Sales are expected to print at 2.0%, down from a gain of 3.7% a month earlier. Data for the week rounds off with the April leading indicators and the Philadelphia Fed survey at 10AM ET, with consensus estimates calling for a print of 20.0, up from a previous read of 18.5. April leading indicators are seen lower at 0.1%, down from the March print of 0.4%. Look for dollar strength to persist as the euro struggles to set aside sovereign debt concerns and fears over the state of one of the world’s largest exporters keep the Japanese yen subdued.

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.