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Forex Today: US dollar maintains advance

Forex Today: US dollar maintains advance

Solid risk-off sentiment continues to dominate the markets, with the US dollar continuing to advance against the yen and European currencies, while most stock markets are trading lower yesterday, although a small recovery is seen during the Asian session.

➡️ Risk appetite continues to be low, with stock markets trading lower almost everywhere yesterday. However, today's Asian session saw some small recoveries. The NASDAQ 100 Index  appears to have made a technical break below the previous key support at 14657, while both this index and  the S&P 500 index  they reached new 3-month low prices yesterday.

➡️ In the Forex market, the US dollar remains the strongest major currency, with  the USD/JPY currency pair  in the spotlight as it hit a new 11-month high of ¥149.18 yesterday with the Bank of Japan openly threatening to intervene but failing to take any concrete action. The US dollar also once again reached new long-term highs against the European currencies EUR, GBP and CHF with a very clear directional trend. Trend traders in the Forex market will be more interested in being Long USD/JPY and Short on  EUR/USD  as these are the two major dollar pairs that historically tend to trend most reliably.

➡️ Many commodities are trading lower in the current risk-off environment, with  They  and silver falling yesterdayHowever, the price of the  crude oil  is rising steadily, threatening to regain the multi-month high reached a few days ago above $92.60. Some soft commodities are mostly holding value, but none are reaching new highs.

➡️ Yesterday's release of US CB consumer confidence data was slightly weaker than expected.

➡️ Australian CPI (inflation) data came in as expected at 5.2%, up slightly from last month's annualized rate.

➡️ The ECB's Holzmann said he was not sure whether the terminal rate had yet been reached, offering the prospect of further rate hikes beyond the current rate of 4.50%.

➡️ There is no major data expected today, so it could be a relatively quiet day in the markets, although the recent solid risk-off sentiment could continue to carry current trends forward.

 

Credit by DailyForex.com

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