Dollar Tries to Lead the Forex Market Without Risk, USDJPY on Fire
The Dollar Index made a notable technical move with a key channel and 50-day moving average break, but there is reason to doubt the currency's intentions. To drive EURUSD, AUDUSD and GBPUSD lower; the greenback needs the full support of risk trends. Yet, both the Dow Jones Industrial Average and S&P 500 (key benchmarks for investor sentiment) posted strong reversals from their respective levels of support. Though there is more than one, major fundamental theme for the forex and capital markets to run on; the cross roads of so much fundamental uncertainty and proximity of such important technical boundaries means we won't stray far from 'risk on' and 'risk off'. We discuss what the resolution of risk trends and the dollar's convictions will likely be, the catalysts to keep tabs on as well as the stand out strength of USDJPY in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.