Markets on Friday: USD Feeling the Heat
Rowan Crosby • 1 min read
While the S&P 500 continues to regain its footing after a short and sharp sell-off, the opposite appears to be true of the US Dollar.
The Greenback has been under pressure in recent days and has fallen away sharply. That has really seen the majors in focus, with many pushing to their extremes.
The EUR/USD is getting set to breakout to the highest level in some time. The Kiwi is also on track to do the same.
While one of the biggest decliners has been the USD/JPY as the Japanese currency continues to see inflows, outpacing the USD.
Bitcoin (BTC) has been one of the other big stories. We’ve seen price take out 9000 and now attack the 10,000 level. This is a huge psychological level and also shows there is still significant buying interest around.
USD is Weak
The USD is back testing support and it appears that it will be a tough job to hold. 88.50 appears to be the low at the moment and we will have a pretty tough holding onto this level.
Despite that, I am still bullish on the USD. In fact, I am expecting more downside ahead in US equity markets and that might just see some strength return to the dollar.
However, I think there is every chance we test support and break lower on the DXY. Longer-term I’m not so sure we hold just yet. Friday will be an important day for us to judge where we’re at.