xau-usd
USD Ends the Week Higher, As Data Indicates Upbeat US Economy
Skerdian Meta•Saturday, January 20, 2024•2 min read
After the retreat in the last two months of 2023, the dollar is showing a willingness to make a comeback, as it has been displaying resilience in the first three weeks of 2024. The USD has remained supported as Treasury yields rose again this week, and economic data thus far has shown that the US economy is improving, instead of slowing down.
on Wednesday we saw some solid figures form the retail sales sales report for December, showing a bigger-than-expected increase in the last month of 2024, despite the Black Friday in November. This is a strong sign that the US consumer is feeling increasingly better. The initial unemployment claims figures also came lower than expected on Thursday, falling below 200K and indicating that the US labour market remains in solid shape.
On Friday we saw the most recent University of Michigan consumer mood report. It is a low-quality economic indicator, but it remains a market mover since it is yet another strong strong report indicating that the consumer is doing well.
The headline sentiment and current conditions numbers are still far below pre-pandemic averages but is focused on the inflation figures, which have fallen below 2020 levels, which is a sign for inflation in other reports to come. The USD index DXY stopped declining at the end of December right at the support zone around 101 points and made a bullish reversal higher this month. In the first half of this week, buyers pushed the price higher in the DXY, but the 200 daily SMA (purple) turned into resistance in the second half, so we will see if buyers can push it above this moving average next week.
DXY Index Daily Chart – Buyers Testing the 200 SMA
The support zone around 101 points held again
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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