The USD Index (DXY), which measures the greenback vs. a bundle of its main competitors, manages to advance further north of the 106.00 yardstick at the end of the week.
The soft tone in the risk-linked galaxy lends much-needed oxygen to the buck and sponsors quite a marked bounce in the index from as low as the 105.60 region recorded in the previous session.
Also supporting the corrective move in the dollar appears the decent uptick in US yields across the curve, which at the same time manage to regain some composure following the post-Minutes weakness.
The weekly leg lower in the dollar seems to have met some contention around 105.60 (November 24), triggering a mild rebound afterwards in line with some profit taking stance in the risk-associated universe.
While hawkish Fedspeak maintains the Fed’s pivot narrative in the freezer, upcoming results in US fundamentals would likely play a key role in determining the chances of a slower pace of the Fed’s normalization process in the short term.
Key events in the US this week: Early markets close (Friday).
Eminent issues on the back boiler: Hard/soft/softish? landing of the US economy. Prospects for further rate hikes by the Federal Reserve vs. speculation of a recession in the next months. Fed’s pivot. Geopolitical effervescence vs. Russia and China. US-China persistent trade conflict.
Now, the index is advancing 0.68% at 106.34 and faces the immediate resistance at 107.99 (weekly high November 21) followed by 109.15 (100-day SMA) and then 110.48 (55-day SMA). On the other hand, the breakdown of 105.34 (monthly low November 15) would open the door to 105.32 (200-day SMA) and finally 104.63 (monthly low August 10).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.