Markets on Friday: The Greenback Fires Up
Rowan Crosby • 1 min read
The Dollar has certainly been on the nose in recent times. US President Trump’s tariffs certainly haven’t helped the plight of Greenback, but that seemed to ease on Thursday.
As the scope of the tariffs starts to get wound back, traders began thinking they wouldn’t be a wide-ranging as many had thought. It started with exceptions for Canada and Mexico, with talks continuing for many other ‘partner’ nations.
At the same time, the jumping dollar hurt the majors. The EUR/USD, was feeling confident after hearing from a positive Mario Draghi, before it got put to the sword.
Bitcoin was another copping some heat. It now looks like the 10,000 level is in all sorts of trouble. The digital currency has plummeted to new lows and is currently testing 9,400, which was where we got to last time we cracked 10,000.
The USD On the move
Key support at the 89.50 level looks like it has done the trick. At least for now. The surge in the dollar might very well be short lived though as we are now looking at US employment figures, which are due for release on Friday.
A weaker than anticipated number might see price back to where we came from. If we get a strong print then we still have some work to do, as there are a number of overhead resistance levels that are in place that have been strong in the past.
90.50 will be our first level of interest. However, I’m still not confident of a rally just yet.
US Dollar Index (DXY)- 240 min Chart.