Markets on Thursday: The USD Showing Weakness

The USD was again weak on a day that was full of bullish sentiment. US stocks are giving Asian markets a strong lead-in as they posted recor

Written by: Dime Levov • Wednesday, August 29, 2018 • 1 min read

• Last updated: Wednesday, August 29, 2018

The USD was again weak on a day that was full of bullish sentiment. US stocks are giving Asian markets a strong lead-in as they posted record highs. It has been a strong earnings season which has seen 80% of companies beat estimates.

Yesterday we also saw a strong GDP figure from the US, coming in at 4.2% which was above expectations.

The news didn’t help the USD as much as we might like as it was still weak into the close.

The GBP got moving thanks to some positive news from the UK on Brexit. While the AUD was weak, as some local banks started to lift interest rate. Putting pressure on the RBA.

The USD is Weak

The support levels at both 94.50 and 95.00 are where we are currently sitting in the DXY.

We have already broken beneath the downtrend and that is keeping the sellers interested. I am bullish overall on the USD, but wouldn’t be surprised if the we continue to see more weakness from a technical perspective.

If strong GDP can’t help us off the mat, then we might have a hint of selling pressure headed into today.