The USD on the Rise
Rowan Crosby • 1 min read
Overall the USD has been doing everything it can to push higher. On Friday, price pulled back a touch, but not before we ran up into overhead resistance.
The key of recent weeks has been interest rates. The FOMC minutes outlined that they stand ready and able to keep rates moving upward.
There has been plenty of talk this past week about just how good the US economy is going at the moment. LEad by good growth and assisted by Trump’s tax cuts. This week we get US GDP, which will be interesting given the backdrop of confidence in the air.
At the same time, much of the attention is still on the US 10-year note yields. While the yields have pulled back from the highs of 3.25%, we can see that they are clearly still climbing.
A hawkish FED and rising yields is a recipe for a strong USD in my eyes.
The USD Outlook
The DXY tested the resistance level at 96.20, however, that price level was quickly rejected. That doesn’t look like a strong move in my opinion and as such I suspect we are not ready to make to many inroads higher at the moment.
We should see decent support at 95.00, as well as 95.50 which has been holding in the past.
US GDP on Friday is the major event on the week, however, the calendar is relatively thin, with homes sales data being some of the other major releases.