Skip to content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Impressive Dollar Rally Cools, SPX Charges Equities and Risk Trends

Impressive Dollar Rally Cools, SPX Charges Equities and Risk Trends

John Kicklighter, Chief Strategist

Talking Points:

  • The USDollar notched a sixth consecutive daily rally for the strongest move in a year, but momentum has cooled
  • SPX posts its heftiest daily rally in two months though conviction may be difficult to maintain for the risk bid
  • Tantalizing technical setups for Pound pairs should be approached with caution, NZD rally a lasting move?

See the standings in the Monthly FXCM Mini trading contest.

We are seeing changing tides behind key market trends. The Dollar's remarkably run through the past week stretched to a sixth straight day for the best run in a year. However, conviction was clearly beginning to flag with a much more restrained performance for the USDollar Index. The same curb on momentum was clear with key pairs like EURUSD, AUDUSD and GBPUSD. These technical boundaries will not be easy to overcome without something material to motivate the Dollar to the next stage. Meanwhile, a swell in 'risk appetite' seems to have found a strong bannerman in the S&P 500. The US equity index posted its best daily performance in two months. Yet, this particular benchmark has a distinct range and a struggle with record highs demanding conviction above. That said, other embodiments of sentiment - be they equity indexes, high-yield assets, Emerging Market ETFs, etc - have more room to run before full faith is demanded. Will sentiment trends last where Dollar has struggled? Meanwhile, sharp moves from the Yen, New Zealand Dollar and some commodities speak more to the tactical situation in the market. We look at prevailing conditions as much as the high-fliers in today's Trading Video.

To receive John’s analysis directly via email, please SIGN UP HERE

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