Morning Preview: Get Ready for a USD Bounce
Rowan Crosby • 1 min read
Another day, another record in equities. The slow grind higher continues as the various indexes in the U.S. make another set of new highs. This time around though the USD has started to slow down after it ran into some resistance.
Markets are still buoyed by the proposed Trump tax reforms, that look set to help bolster business and the overall economy. Along with interest rate rises that appear to be firmly on the agenda, that means the USD is starting to gain some footing after a long slide down.
USD Hits Resistance
The US Dollar Index (DXY) is a measure of the USD versus a basket of currencies. It’s a great gauge for traders to use to help see the direction of the momentum. Overnight it’s clear that we’ve found resistance at the 93.50 level.
That helped lift some of the other majors including the EUR and GBP which had been in sell-off mode. I’m now expecting a bounce off 93.00 even and traders can trade that outright via a CFD product or use that to add to the analysis for some of the other major currency pairs.
US Dollar Index (DXY) – 240 min Chart.
Top Economic Data
JPY – Unemployment/CPI
EUR – German Unemployment
GBP – GDP
EUR – Inflation
USD – Chicago PMI and Michigan Consumer Confidence