USD Index Futures Hold Firm Above 98.000 - Forex News by FX Leaders
The USD couldn't push higher

USD Index Futures Hold Firm Above 98.000

Posted Monday, August 19, 2019 by
Shain Vernier • 1 min read

September USD Index futures are holding their own above 98.000 and are in the process of regaining the losses of early August. Tight forex ranges have been the order of the day for the Greenback. Modest gains vs the Canadian dollar and Japanese yen have offset small losses against the euro and British pound. All in all, it has been a quiet open to the forex week.

Falling yields on short-term U.S. Treasuries were once again the story earlier today. Here is a quick look at the formal auction results:

Event                                                Actual  Previous

U.S. 3-Month T-Bill                          1.90%     1.96%

U.S. 6-Month T-Bill                           1.84%    1.89%

The downtrend in U.S. Treasury yields has continued, with both the 3 and 6-Month T-bills falling about 0.05%. This is yet another sign that institutional money is fleeing to safe-haven assets. In much the same way as gold has rallied, the demand for bonds continues to be strong, driving yields lower.

Today’s T-Bill auction has done little to deter the bullish sentiment toward the USD Index. At press time (12:00 PM EST), September USD Index futures continue to trade in the green.

USD Index Futures Back Above 98.000

If we see a positive session close in September USD Index futures, that will make four out of the last five. The lone exception was Friday’s daily Doji formation.

September USD Index Futures (DX), Daily Chart
September USD Index Futures (DX), Daily Chart

Overview: For the time being, we are in a bit of a holding pattern on the forex and USD Index. Ranges are tight across the majors, suggesting traders are taking their business to other markets. However, with the Reserve Bank of Australia (RBA) kicking off a relatively active mid-week during the coming U.S. overnight, the forex is due to open up in the coming 24 hours.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
The USD has been pretty weak in the last two weeks, but today it is attracting some bids as we approach the FOMC meeting tomorrow
21 mins ago
The AUD/USD currency pair hit the bearish track representing 0.18% losses today, ahead of RBA keeping its easing bias
2 hours ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of