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. See our updated Privacy Policy here.

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
Oil - US Crude
Mixed
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
Bearish
More View more
Real Time News
  • Bitcoin and Litecoin are moving higher after Tesla CEO Elon Musk's Twitter dealings injected volatility into the crypto market. Get your #cryptocurrency market update from @FxWestwater here:https://t.co/Zbd1TSiIuc https://t.co/LQQe4Wpg2N
  • 9 out of 11 S&P 500 sectors ended lower, with 79.2% of the index’s constituents closing in the red. Energy (-2.63%), industrials (-1.47%) and financials (-1.34%) were among the worst performers, whereas real estate (+0.17%) outperformed. https://t.co/j9VI9UQc7N
  • Gold Price Forecast: XAU/USD Bid on Weak Dollar, Softer Yields -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/market_alert/2021/05/18/gold-price-forecast-xau-usd-bid-on-weak-dollar-softer-yields.html $XAUUSD $GLD $GC_F https://t.co/Cs94yiNhfI
  • The US Dollar is losing ground against a few ASEAN counterparts. USD/SGD, USD/IDR and USD/PHP seem to be maintaining a downside bias. USD/THB may rise. Get your market update from @ddubrovskyFX here:https://t.co/I2oeWXMFLc https://t.co/C49ElPMI7l
  • Treasury Sec. Yellen: - Investments and tax proposals in "Jobs Plan" will enhance net profitability of corporations, improve global competitiveness - These are investments to make the economy more competitive and sustainable
  • Treasury Sec. Yellen: - Corporate sector must bear its fair share, plan to return corporate tax toward the historical norm - We will target incentives for companies to move funds, operations overseas
  • Treasury Sec. Yellen: - We must improve public R&D to maintain America's technological edge - We must build support systems to improve quality of life and opportunities for those most impacted by wealth inequality
  • Treasury Sec. Yellen: - We must reorient the framing of US fiscal policy - Poor US fiscal policy has meant infrastructure wasn't maintained or modernized
  • Treasury Sec. Yellen: - Innovation required from public & private sector to improve the economy - We must invest in public infrastructure and institutions that drive productivity
  • Treasury Sec. Yellen: - Wage gains and profits have benefitted the top families in America - Middle class families have faced wage stagnation
US Dollar (DXY) Struggles to Push Higher After Multi-Month Sell-Off Sets the Tone

US Dollar (DXY) Struggles to Push Higher After Multi-Month Sell-Off Sets the Tone

Nick Cawley, Strategist

US Dollar Price, News and Analysis:

  • The US dollar and a dead cat bounce.
  • US Labor Report, released on Friday, is now key

The US dollar bounce off last Friday’s low has seemingly come to an end with the DXY back in negative territory for the session. While the recent series of lower highs and lower lows is broken, any move higher looks likely to be short-lived. On Friday, the latest US Jobs Report will be released and while another surprise cannot be ruled out, the ongoing spread of COVID-19 in the US will surely start to weigh again on employment prospects. Last month the US Bureau of Labor Statistics said that nonfarm payroll employment rose by 4.8 million in June, beating market expectations by a wide margin, while the unemployment rate fell to 11.1%. This Friday’s report (12:30 GMT) is expected to show another 1.6 million jobs added with the unemployment rate falling to 10.5%.

Forex Fundamental Analysis – News that Matters

In the US, negotiations continue in Congress over the second COVID-19 stimulus package with the summer recess set to start on August 7. While it is likely a compromise will be found and the package passed this week, if Congress doesn’t pass the stimulus package, members will be likely called back during the one-month recess to continue negotiations.

DailyFX Economic Calendar

US Treasury yields continue to hoover around multi-year and record all-time lows as the dollar printing press shows no sign of slowing down. These ultra-low yields are now attracting borrowers with Alphabet (Google) selling a multi-tranche USD10 billion package of debt yesterday. The sale was said to be three times oversubscribed with Alphabet borrowing money at record low yields.

US Dollar (DXY) Struggles to Push Higher After Multi-Month Sell-Off Sets the Tone

The latest CoT report – week ending Wednesday July 29 - showed speculators continuing to short the US dollar with their bearish exposure now close to extreme levels last seen in 2011. Friday’s dead cat bounce may have been caused by traders trimming some of this exposure ahead of the weekend.

US Dollar Shorts Becoming Extreme, EUR/USD at Risk of Reversal

The daily US dollar chart suggests that any uptick will run into short-term resistance from 94.00 to the 20-dma around 94.66, while last Friday’s low at 92.51 remains initial support. The DXY has moved out of oversold territory for the first time in a month, while volatility (CCI) remains fairly consistent.

US Dollar (DXY) Daily Price Chart (January – August 4, 2020)

US Dollar (DXY) Struggles to Push Higher After Multi-Month Sell-Off Sets the Tone

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES