USD Pushes Higher as Outlook is Strong
Rowan Crosby • 1 min read
While it might have been a risk-off day, for the most part, the USD continued its slow grind higher.
Stocks were down across the board and US yields fell, but that didn’t seem to worry the USD. The commentary around on the day, was that the US economy is strong and on track.
Thanks to Trump’s tax cuts, the economy is growing and there were even suggestions around that the US might be on track for inflation fears. That means that rates will continue to rise.
Let’s not forget the market is expecting another hike in December and two more next year.
That continues to underpin the strength in the Greenback and will do so going forward in my opinion.
The USD Outlook
The DXY looks like it is going to test the resistance level at 96.20. We have slowly but surely been inching higher.
Support at 95.00, has held and 95.50 has been a bit of a mini support as well.
I think we might be even up for a test of resistance to close out the week. Friday should be an interesting session in the US.