U.S. Dollar Index (DXY)
U.S. Dollar Index (DXY)
DXY is sitting at an important KL (Key Level) at around 100.600. On a bigger timeframe we are still bullish on dollar.
Several factors support Dollar strength:
The Dollar is expected to maintain its strength for some time.
Still, some risks could lead to further appreciation, including Euro area concerns, changes in Chinese currency policy, and how markets interpret US growth prospects.
Interest rates:
With yesterday’s interest rate decisions (50BPS) we saw DXY spike down. We do have to keep in mind if interest rate cuts continue, we might turn bearish on DXY, resulting in less demand in U.S. Dollar and more demand in stocks and gold.
If however, we continue to the upside with DXY, it will confirm our XAUUSD sells that we have given the analysis for.
Keep in mind:
The aim of raising of the Fed's rates is to adjust the inflation level to a target value. Interest rate hike may have a positive effect on dollar quotes, while lowering can be seen as negative for the US dollar.
Happy trading!
FxPocket
DXY is sitting at an important KL (Key Level) at around 100.600. On a bigger timeframe we are still bullish on dollar.
Several factors support Dollar strength:
The Dollar is expected to maintain its strength for some time.
Still, some risks could lead to further appreciation, including Euro area concerns, changes in Chinese currency policy, and how markets interpret US growth prospects.
Interest rates:
With yesterday’s interest rate decisions (50BPS) we saw DXY spike down. We do have to keep in mind if interest rate cuts continue, we might turn bearish on DXY, resulting in less demand in U.S. Dollar and more demand in stocks and gold.
If however, we continue to the upside with DXY, it will confirm our XAUUSD sells that we have given the analysis for.
Keep in mind:
The aim of raising of the Fed's rates is to adjust the inflation level to a target value. Interest rate hike may have a positive effect on dollar quotes, while lowering can be seen as negative for the US dollar.
Happy trading!
FxPocket
Feragatname
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