|Day's range||98.91 - 99.46|
|52-week range||94.65 - 102.99|
It has been an historic and volatile trading quarter defined by the novel coronavirus outbreak, with unprecedented central bank intervention, government action, global recession fears and severely depressed oil prices among many themes.
The direction of the June U.S. Dollar Index this week is likely to be determined by trader reaction to the retracement zone at 99.245 to 98.130.
PMI numbers out of China impress early. Will a busy economic calendar be enough to distract the markets from the continued spread of COVID-19?
The Dollar index (DXY) is halting its slump, after registering losses in six consecutive daily sessions to now test the 98.35 support level.
It’s bearish start to the day, with the continued rise in coronavirus cases raising the prospects of a lengthier economic meltdown…
Trader reaction to the retracement zone at 99.245 to 93.130 will determine the near-term direction of the June U.S. Dollar Index over the near-term.
China’s industrial profits tested risk appetite early on, with stats later today unlikely to have a material impact as the governments battle on.
The Dollar weakened against every single G10 currency on Thursday after terrible US economic data fuelled concerns over the health of the largest economy in the world.
The last few days brought us a correction on the USD. In theory, a weaker dollar should support commodities but that’s just an expected reaction which won’t necessary be applicable in these volatile times that we are living now.
Flash forward to 2020 and the lawmakers took out $1 trillion like a hot knife through butter and moved right to $2 trillion. Perhaps later this year, they’ll have to move to $5 trillion.
The BoE and ECB will garner some attention, though expect updates from Capitol Hill and U.S weekly jobless claims figures to steel the show.
Is Trump about to make a historical error as he watches China reopen? Moving too early and this pandemic may well be here to stay.
Service sector activity took a dive, manufacturing sector likely to struggle further. As China comes out of lockdown, social unrest elsewhere could become an issue.
The MSCI Asia Pacific Index is set to notch back-to-back gains for the first time in nearly three weeks, following the US stock market’s best session in 12 years. However, with US equity futures now in the red, it reinforces the notion that risk appetite is still struggling to find a firm footing, and the advances in global equities remain tentative at best.
Based on the early price action and the current price at 101.515, the direction of the June U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to the major 50% level at 101.495.
Political wrangling at a time when the American people need some bipartisanship. Joe Biden may be watching is chances of victory sliding away…
Market turmoil resumes early in the Asian session as the markets react to the latest coronavirus containment measures and numbers.
The key Gann angle to watch is moving up at a rate of 1.000 per day from the March 9 main bottom at 94.530. It came in at 103.530 on Friday. The index has been hugging this angle for 9 sessions.
While the equity markets have somewhat settled this week, the US dollar is making headlines as the trade-weighted dollar index has reversed sharply higher since last Monday.
Central bank actions appear to have settled nerves for now. Looking across markets this morning, what strikes most of all is there is nothing all that shocking for a change, certainly not compared to the volatility seen over recent weeks.
Coronavirus news updates and government and central bank action remain the key drivers as the week comes to a close.
Don’t get complacent playing the short-side. The dollar index could turn sharply lower and the Euro and British Pounds, for example, sharply higher as soon as the Federal Reserve Shuts off the taps providing dollars.
Another epic slide by the Pound as the markets punish Johnson and the UK battle plan. Does the UK Government really have it wrong though?