FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews

The Fed has cemented the dollar's fall

29 July 2021

The Fed did not give any clear signals about the start of the stimulus rollback at the end of its regular meeting, indicating only the existence of discussion about it. That’s not to say that stock markets breathed a sigh of relief, as key indices only managed to recover some of the losses incurred earlier in the week. Chinese stock indices bounced back from multi-month lows, but their gains today are limited and unsustainable. The yield curve has flattened somewhat in the debt market, indicating expectations of a more measured monetary policy normalisation. Technically, this is a breeding ground for rising equity indices and a weaker dollar, although equities are experiencing some hesitation so far, bumping close to the top.

There is more certainty in the currency market, where the dollar is under some pressure. The intraday charts clearly show a weakening reversal, with the dollar index jumping from 92.5 to 92.77 in the first minutes but then coming under sustained pressure, dropping to 92.1 by the start of European trading on Thursday.

The daily charts also show a bullish advance from the upper end of last months’ trading range. While technically, the dollar’s rise stalled as early as last week, it was worth waiting for the market’s reaction to the Fed meeting to be more confident of the trend. The US central bank comments and approach favour the USD sellers, forming the basis for a pullback to the lower boundary of the trading range around 89.60. Interestingly, an important technical signal – the golden cross – did not work at all, and we saw a systematic weakening of the DXY instead of the anticipated rise.

The world’s most popular currency pair, EURUSD, has another boost on the decline to the 1.16-1.17 area. The development of this movement opens the way to the highs of this year, at 1.22-1.23.

The rising trend has also established itself in GBPUSD. Earlier this month, the pair got support on a decline below 1.36, where the 200-day moving average was. Sterling is well-positioned to return to the highs above 1.42 in a matter of weeks and continue to climb higher levels while plenty of competitors are lagging. Increased traction in the Pound is provided by both the booming house prices and the rising stock markets, which directly impact speculative interest in the British currency. The next signals from the Fed are not expected before the Jackson Hole symposium at the end of August. Until then, the weakening of the dollar could be very pronounced.



Oil reached a 2018 high
Oil reached a 2018 high

Oil prices are rising for the fourth day in a row. On September 24 trades, the Brent price reached its maximum since 2018. According to analysts, the price rise is influenced...

28 Sep 2021

German Elections In Focus
German Elections In Focus

Futures in the United States are rising, while those in Europe are falling as Germany gives its final verdict on its newly elected Chancellor. Germany is a European powerhouse...

27 Sep 2021

US Dollar Index gathers traction and tests 93.40
US Dollar Index gathers traction and tests 93.40

The greenback, when tracked by the US Dollar Index (DXY), starts the week on the same upbeat mood that finished the last one and re-visits the 9240/50 band on Monday...

27 Sep 2021

Space tourism takes off and opens colossal market
Space tourism takes off and opens colossal market

Space tourism is definitely on the rise. According to Bank of America Merrill Lynch, it could represent USD 2.700 billion by 2045, against 400 billion today...

24 Sep 2021

All Eyes On The BOE Meeting
All Eyes On The BOE Meeting

US and European futures are trading higher today, following the Fed’s announcement yesterday that the economy is exhibiting signs of strength and...

23 Sep 2021

Stocks steady on Evergrande debt assurance
Stocks steady on Evergrande debt assurance

Equities were mostly recovering on Wednesday as market nerves were somewhat calmed after China’s troubled property giant, Evergrande, told investors it will meet

23 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.