Morning Preview: Dollar Loses its Lustre - Forex News by FX Leaders

Morning Preview: Dollar Loses its Lustre

Posted Monday, October 30, 2017 by
Rowan Crosby • 1 min read

Morning Fellas,

Once again Donald Trumps and his tax plans were making headlines in US trade, but this time there were more doubts about the timeline that they might occur. That was the key driver that helped push the US dollar, after what has been a strong run higher.

The USD weakness also came through in the USD/JPY, which fell away from the highs at 114.00 and are now pushing back to the 113 handle. The reality star was the GBP/USD who started gaining ground as it appears that the odds of a rate hike in the UK are now 90%, or in market terms – an absolute certainty.

This week is all about the Central Banks, with big announcements coming from the BOJ, BOE and of course the FOMC. So I expect markets to be a little muted early in the week.

 

US Dollar

After one session of declines, analysts are suggesting that the dollar is about to slow down. I’m not that keen to rule out the greenback just yet. We have support at 94.29, on the US Dollar Index (DXY) and I expect that we might get some more downside to get us back to that point. However, I’m still firmly bullish on the dollar and most of the majors. The only one I expect to make up ground this week is the GBP.

 

DXY

US Dollar Index (DXY) – 240 min Chart.
 

 

Top Economic Events

Tuesday

JPY – BOJ Policy Statement

EUR – Eurozone CPI

CAD – GDP

USD – Consumer Confidence

 

Wednesday

NZD – Employment

CHY – Manufacturing PMI

GBP – Manufacturing PMI

USD – FOMC Statement

 

Thursday

EUR – German Unemployment

GBP – BOE Interest Rate Decision

 

Friday

AUD – Retail Sales

USD – Employment

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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