A Busy Week for the USD
Rowan Crosby • 1 min read
Wall Street has been clearly in focus over the last week as equity markets have been under all sorts of pressure.
The falls haven’t really translated to the USD which for the most part, has been holding up quite well. Although there has been some downside.
The week ahead brings a fair bit of economic data that will have an impact on the fortune of the USD. Clearly, the biggest event is the FOMC minutes. Let’s not forget that last month we did see a rate hike. However, I feel much of the news around it has now been priced in.
So the other events might just have a bit more punch, which is going to be kicked off by retail sales on Monday.
The other top-tier events are building permits, Philly Fed and existing home sales.
The USD Outlook
The DXY ultimately fell all the way from the resistance level at 96.20. By key support was 95.50 but price settled a little lower, with a bounce off 95.00 on Friday.
94.00 is the next big level below and that will be the focus of the week for me. If the equity contagion continues to spread then the USD might well fall.
However, yields are on the rise and that will potentially offset some of the damage.