|Day's Range||97.39 - 97.68|
|52 Week Range||96.33 - 98.67|
Based on the early price action, the direction of the September U.S. Dollar Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 97.120. The dollar index could weaken if the Fed comes across as excessively dovish. This means it signals rate cuts in July, September and December. Skipping the July rate cut could be read as hawkish and this could drive the dollar higher against a basket of currencies.
As our research team continues to pour over the charts and look for any signs of direction regarding tomorrow’s Fed news, we put together a couple the charts that may highlight some expectations and in at what the markets may do the rest of the week.
It’s all eyes on the FED later in the day as the Asian markets respond to news of Trump and Xi’s planned G20 Summit meeting.
The RBA policymakers mentioned that the Bank would opt for reducing the interest rates again. German ZEW Survey June Economic Sentiment data shocked market reporting -21.1 points.
The RBA talks of further rate cuts as the UK Tory Party Leadership race heats up. Stats out of the Eurozone will also be relevant later this morning.
The USD Index started losing shine after the release of the June NY Empire State Manufacturing Index. Cable remained fragile throughout the day as Britishers continued to fear over a Hard Brexit.
Based on the current price at 97.020, the direction of the September U.S. Dollar Index into the close is likely to be determined by trader reaction to the Fibonacci level at 97.020.
Tensions are running high across the pond as the highly anticipated Fed rate cuts loom over what has already been a testing time for the USD.
All eyes will be on the Federal Reserve’s policy announcement on Wednesday, where any hint of waning patience from policymakers could undermine the Greenback’s recent gains.
Based on Friday’s close at 97.065, the direction of the September U.S. Dollar Index on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 97.020.
Today’s positive US data seemed to mitigate the speculations over a probable Fed rate cut. Fiber dropped 0.66% reaching near 1.1214 levels amid Greenback upsurge and weak German & Italian data.
The mood across financial markets was cautious this morning as rising geopolitical tensions in the Middle East and persistent uncertainty over US-China trade developments capped risk appetite.
US market received an unexpected bounce from surging oil prices as energy stocks topped the list of winners. But investor sentiment remains supported by the one constant that keeps the S&P 500 ticking, the allure of the Federal Reserve easy money policy.
It’s a litmus test for the U.S economy today. Retail sales and consumer sentiment figures will give the FED an idea of how consumers really feel.
Oil prices rose around 3.8% in the early hours as two Saudi Oilers got attacked in the Gulf of Oman. Cable down as Brexit Hardliner Boris won the first ballot. Weak Jobless Claims strengthened rate cut hopes.
It has been a rollercoaster trading week for oil markets as investors tussled with conflicting fundamental themes pulling and tugging at the commodity.
Right now, we believe the first rotation of our expected Pennant/Flag formation is starting to set up and we look for early signs in the DOW and TRAN charts.
The Greenback is on the back foot early as the Asian markets respond to softer inflation out of the U.S. Australian employment figures failed to impress this morning.
ECB President Mario Draghi commented today that the Central and Eastern Europe remains vulnerable to the trade war headwinds. Weak EIA Crude data resulted in a decline of Oil prices.
Based on the early price action and the current price at 96.620, the direction of the June U.S. Dollar Index is likely to be determined by trader reaction to the 50% level at 96.715 and the downtrending Gann angle at 96.510.
Asian equities were mostly lower on Wednesday morning as risk sentiment swung back to caution on persistent US-China trade tensions.
Technical analysis gives us some hints, that this movement should be continued, at least on the Dollar Index and the EURUSD but do we have the same situation on other pairs with the USD?
The GBP/USD pair stood higher after the release of positive UK Average Earnings data. Overnight New Zealand Q1 Manufacturing Sales data impacted the NZD/USD movements in the initial hours.
Gold stumbled to a fresh one-week low on Tuesday as cautious optimism over global trade developments boosted risk sentiment and dampened appetite for safe-haven assets.