The US Dollar Index (DXY) is trading mildly lower at 105.35 on Monday at the midpoint of the US session. The strong market odds and the Federal Reserve's (Fed) hawkish stance toward cutting interest rates limits the losses for the US Dollar. Any possible Greenback rally predominantly depends on major US data this week, particularly April’s Consumer Price Index (CPI) on Wednesday.
EUR/USD rapidly left behind. Friday’s decline and managed to meet fresh buying interest, reclaiming the area beyond the 1.0800 barrier in response to the resurgence of the downward pressure in the Greenback.
GBP/USD keeps its auspicious start to the week well and sound and navigates the upper end of the range near 1.2560 on the back of the resumption of the selling bias in the US Dollar.
USD/JPY broke above the 156.00 handle on Monday as markets continue to chew through Japanese Yen (JPY) gains following a pair of suspected “Yenterventions” from the Bank of Japan (BoJ) at the end of April and beginning of May. The BoJ has remained tight-lipped on the matter, refusing to officially confirm or deny direct intervention in global markets on behalf of the Yen.
Gold prices remain on the back foot amidst some recovery in the Greenback and ahead of the release of US PPI and CPI later in the week, prompting XAU/USD to retest the $2,330 region per troy ounce.
Oil trades around $78.00 after a failed attempt to snap above $80.00 on Friday. More criticism emerges globally towards Israel and its offensive into Gaza. The US Dollar Index steadies around 105.30 ahead of US CPI data later this week.
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When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
