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
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
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Update on #Cryptocurrencies #BITCOIN +3.41% #BITCOINCASH +2.15% #ETHEREUM +4.35% #RIPPLE +0.93% #LITECOIN 2.35%
  • Amid escalating China tension, Australian Dollar risk reversals indicate that the bullish bias recently enjoyed by AUD/USD could soon unwind and pressure spot prices back lower. Get your $AUDUSD technical analysis from @RichDvorakFX here: https://t.co/ZAHEwxNrEW https://t.co/gWt401EkQI
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.62% 🇬🇧GBP: 0.50% 🇨🇭CHF: 0.42% 🇦🇺AUD: 0.21% 🇯🇵JPY: 0.09% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Gn0ub8TS6e
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/gVU4QoQjnv
  • White House says that Trump and Macron talked about COVID-19 and holding G7 meeting in person - BBG
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 0.77% Gold: 0.58% Oil - US Crude: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/0LgQROzxEj
  • Is there? Tough assertion to back up... https://t.co/I0TLitj21j
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.91%, while traders in US 500 are at opposite extremes with 76.25%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JWJfhVeAZH
  • RT @FedResearch: New #IFDPPaper shows how currency hedging links global imbalances to exchange rate determination, cross-currency basis and…
  • $AUD $AUDUSD | Australian Dollar Risk Reversals Slump as China Tension Heats Up (via @DailyFX) -Aussie bulls undermined by stalling call/put skew readings -Daunting confluence of technical resistance near 0.67 a threat Link to More: https://www.dailyfx.com/forex/market_alert/2020/05/28/audusd-aud-usd-price-outlook-australian-dollar-risk-reversals-slump-china-tension.html #FX #Forex #Trading https://t.co/Ra4EJHsyib
US Dollar Drops with FX Volatility on Coronavirus Optimism

US Dollar Drops with FX Volatility on Coronavirus Optimism

2020-04-07 16:05:00
Rich Dvorak, Analyst
Share:

DXY INDEX PRICE OUTLOOK: US DOLLAR & FX VOLATILITY PULL BACK, MARKET SENTIMENT GROWS MORE SANGUINE AS CORONAVIRUS FEARS FADE

  • The US Dollar has slid nearly 3% from its recent swing high
  • DXY Index drops below the 100.00 price level as FX volatility sinks
  • USD price action could remain under pressure while coronavirus fears fade

The US Dollar now trades on its back foot following a 2% jump to start the month and 2Q-2020 judging by performance of the DXY Index. USD price action is now down about 3% on balance from its March 20 swing high. The latest bit of downside in the US Dollar appears driven by investors unwinding their recent rush into safe-haven currencies amid the wave of coronavirus concerns.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Check out these forex market basics and trading strategies
Get My Guide

DXY INDEX – US DOLLAR PRICE CHART: DAILY TIME FRAME (23 DECEMBER 2019 TO 07 APRIL 2020)

DXY Index Price Chart US Dollar Forecast

Chart created by @RichDvorakFX with TradingView

The DXY Index plunged back below the 100.00 price level early Tuesday as investor risk appetite carries forward from the prior trading session. Improving market sentiment, initially sparked by the flood of stimulus from global central banks and governments, was fueled further by ‘flattening the coronavirus curve’ after Italy and New York reported decelerating COVID-19 cases, hospitalizations and deaths.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Rich Dvorak
Learn how to analyze and react to market news in real-time
Get My Guide

If the shift in sentiment lasts, there could be potential for the US Dollar to keep edging lower as the DXY Index retraces last month’s trading range, perhaps to test technical support provided by the 50-day and 200-day simple moving averages.

FX VOLATILITY FADES & WEIGHS ON US DOLLAR

DXY Index Price Chart US Dollar Forecast FX Volatility

Chart created by @RichDvorakFX with TradingView

Alongside the recovery in market sentiment has been a pullback in measures of volatility like the VIX Index and 30-day implied volatility on the Euro, Pound Sterling and Yen (FX VIX). As investor outlook turns more positive and optimistic that the apex of the coronavirus pandemic is in the rearview mirror, currency volatility could fall further, which may continue pressuring the US Dollar.

Top Trading Opportunities in 2020
Top Trading Opportunities in 2020
Recommended by Rich Dvorak
Discover our latest list of top trading opportunities
Get My Guide

However, as unemployment spikes and the economy struggles to recover, economic data could rekindle recession fear and steer traders back into anti-risk assets such as the US Dollar.

Keep Reading – AUD/USD Price Outlook: Virus Optimism Boosts Australian Dollar

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES

News & Analysis at your fingertips.