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
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
Bullish
Wall Street
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/5KaUvfGM4I
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/FqAsp91Gia
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cKOUmtj7Dj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/QMKyTBOKNG
US Dollar Stays Strong After PCE Inflation, Spending Data

US Dollar Stays Strong After PCE Inflation, Spending Data

Rich Dvorak, Analyst

US DOLLAR OUTLOOK: DXY INDEX STRONGER AFTER PCE INFLATION, PERSONAL SPENDING DATA

  • US Dollar is trading stronger across the board of major currency pairs early Friday
  • USD price action extends to session highs after in-line economic data was released
  • PCE inflation accelerated 0.6% month-over-month as personal spending rose 0.5%

US Dollar bulls are in the driver seat Friday morning with the broader DXY Index up 0.4% intraday. This influx of US Dollar strength is being felt primarily against the Aussie and Euro with AUD/USD and EUR/USD down 58-pips and 49-pips respectively at the time of writing. Relatively firmer Treasury yields could be helping fuel US Dollar buying pressure. That said, with economic data crossing the wires just now, the Greenback might struggle to sustain upward momentum on the session. PCE inflation and personal spending data were both reported in-line with market forecasts, which could ultimately disappoint Fed taper debate hawks. Month-end flows could also be exacerbating US Dollar strength.

DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 28 MAY 2021)

DXY Index Price Chart US Dollar Forecast

Chart by @RichDvorakFX created using TradingView

While core PCE is the Federal Reserve’s preferred gauge of inflation, and this metric did just accelerate to its highest level since 1992, the central bank has been expecting inflation to turn higher and believes the rise to be ‘largely transitory.’ Not to mention, markets have already digested red-hot CPI data released earlier in the month and have since been met with a barrage of dovish commentary from FOMC officials. As I noted in my weekly US Dollar forecast, however, risk to US Dollar outlook appears skewed to the upside. We now see the DXY Index defending critical technical support and invalidating its bearish descending trendline. A close above the 20-day simple moving average could provide confirmation of this and open up the door for US Dollar bulls to set their sights on the upper Bollinger Band.

-- 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