January 31st Morning Brief - Forex News by FX Leaders

January 31st Morning Brief

Posted Tuesday, January 31, 2017 by
Dave Green • 2 min read

U.S. Dollar Index (DXY)

The U.S. dollar index, DXY, started the week in full swing, marking this weeks high of 101. However, it couldn’t be sustained and dropped while erasing daily gains. This was expected, as mentioned in the January 30th morning brief. On another note, the treasury market shows limited gains ahead of U.S data in the coming days.

Investors still have eyes ahead of the U.S. data to produce direction instead of confusion all around. Nevertheless, the market is reacting to President Trump’s executive orders. In-fact, those orders weight on market has limited impact yet still could make it worse for the Greenback. It was supposed to be expected; President Trump must follow his promises, and still have total control over the global politics.

Let’s have a look at  the U.S. dollar index daily chart given below:

This is U.S. dollar index daily chart.

Nikkei 225 Index

The Japanese Yen strengthened and shows modest gains against the US Dollar early in Tuesday’s Asian session amid solid data that came in better than expected.

The Bank of Japan holds a policy balance rate at -0.100%. The jobless rate was steady and household spending fell much less than expected in December.

Asian markets continue to drop; the Nikkei reached multi-week highs turned down yesterday and still continued earlier this morning in Asian-Pacific trading session. This impact of strength in the Yen can be seen under Nikkei 225, which dropped to 19,050 as mentioned in yesterdays brief.

The Nikkei index reached within the premises of buying area, so stay focused and let the market make take direction around that level in order to produce a bottom. This will turn into a profitable trade level. The Nikkei can slide down a bit just to confuse the market. This is how market plays with investor sentiments.

Let’s have a look at the Nikkei index daily chart given below:

This is Nikkei index daily chart.

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