Growth Concerns Weighing on the USD
Rowan Crosby • 1 min read
The USD has continued to fall away, after a really strong run-up recently. The concerns at the end of last week have all centered around concerns about global levels of growth.
The US is currently in a period of tightening monetary policy, which is one reason we are seeing USD strength. If the global growth starts to slow and that weighs down the US economy, then the FED might not have the same trajectory ahead for its rate hikes.
Let’s not forget the market is pricing in a hike in December and two in 2019.
At the same time, the trade wars are still seriously in-play. While the White House has been positive on the developments recently, it still seems that China is some way off meeting the requirements form the US. Or at least not really wanting to at all.
We might be in for a low volume week as the US has Thanksgiving and that will lead to a shortened week. So the moves might come early if at all.
The USD Outlook
The DXY is trading below the resistance level 97.00 and above the next support at 96.00
This is sort of a middle ground area in my opinion, so I do expect a quick move one way or another.
Given that price failed at the highs, then I’ll be targeting a move to the 96.00-20 support area early in the week.