Dollar bulls back in driving seat

25 April, 2019

The Dollar Index (DXY) found comfort near a yearly high above 97.70 today, after a raft of strong US earnings in the previous session boosted confidence over the health of the US economy.

With improving US economic data easing fears revolving around a possible slowdown in growth momentum, appetite for the Greenback has improved drastically in recent weeks. While the DXY is likely to push higher in the near term, the medium to longer term outlook remains in favour of bears. For as long as the Federal Reserve maintains a “patient” and “flexible” approach towards interest rates, Dollar bears still remain in the game. Much attention will be directed towards the US Q1 GDP data on Friday. Should the report disappoint market expectations, the Dollar Index may end up surrendering this week’s gains are possibly more.

Sterling depreciates in the background 


Elsewhere, the British Pound has extended losses against a broadly stronger Dollar with prices trading marginally below 1.2950 as of writing. 

A combination of Brexit related uncertainty and Dollar strength should ensure the GBPUSD remains depressed for the rest of the week. The breakdown and weekly close below 1.3000 signals further downside with the next key level of interest at 1.2870 and 1.2800, respectively. Bears remain in firm control under the phycological 1.3000 level.

EURGBP challenges 0.8680 


The EURGBP continues to edge higher on the daily charts with prices trading towards the 0.8680 resistance level.

A breakout opportunity seems to be forming with a daily close above 0.8680 needed to signal further upside. We could see a scenario where previous resistance transforms into a dynamic support that encourages a move higher towards 0.8725.

EURJPY bulls nowhere to be found 


This has been a bearish trading week for the EURJPY thus far with bulls nowhere to be found.  The downside suggests that prices are likely to test the 125.00 level and potentially lower in the medium term. For bulls to have a chance in reclaiming the driving seat, the EURJPY needs to push back above 126.00.

Let’s not forget about Gold 


It is becoming evident that Gold bulls are losing the battle this week, given how prices are trading near a 4-month low.

An appreciating Dollar is a primary culprit behind Gold’s depreciation in recent days. The precious metal still has a chance to bounce back if US GDP data fails to meet market expectations. Looking at the technical side of the equation, the precious metal is bearish on the daily charts with the first checkpoint at $1265 and $1260, respectively.


Source link  
Dollar index drops after US retail sales contraction

The Dollar index (DXY) immediately fell by some 0.2 percent, dropping below the 98.0 psychological level once more...

Dollar's fall halted at 98.4 support level

The Dollar index (DXY) fell by about 0.38 percent before paring back losses, as the 98.4 support level kicked in. Although the September US inflation...

Dollar paring early October losses

The Dollar index (DXY) continues to pare losses seen earlier this month, as investors await the minutes from the September FOMC meeting...


Gold hammered by resurgent Dollar

Gold tumbled more than $30 on Wednesday, almost breaking below $1500 as political uncertainties in the United States and Brexit...

Time to prepare for 100 in the Dollar Index?

The Greenback is on a tear and the breach above 99 in the Dollar Index makes 100 look very appetizing on the menu. The stunning run of buying...

Time to expect a jump to $60 in WTI Oil?

The breaking development that transpired throughout the weekend, where attacks on Aramco Oil plants in Saudi Arabia could take away up to 5.7...


Risk sentiment brightens

A wave of optimism is sweeping across financial markets with stocks in Asia pushing higher on renewed optimism over a potential breakthrough...

Pound regains mojo on positive GDP

It has not been a bad start to the trading week for Sterling which is standing tall against every single G10 currency as of writing. Mildly encouraging remarks...

Gold finds comfort near six-year high

Everyone wanted to piece of Gold yesterday after US manufacturing activity decelerated in August for the first time in three years...

  


Share it on:   or