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Forex Today: US Dollar Index makes a bullish bounce from 101.56

Forex Today: US Dollar Index makes a bullish bounce from 101.56

The US dollar and global stock markets start the week higher, with the DXY rebounding from key support at 101.56.

➡️ The week opened with a rising US dollar. The Dollar lacks a convincing long-term trend and currently appears stuck between support at 101.56, which has held effectively today, and the resistance near 102.375.

➡️ Most global stock markets are starting the week higher, with the NASDAQ 100 index gaining a notable lead. Markets are digesting Friday's mixed US jobs data, which appears to show more of a slowdown in the US economy. This is seen as a positive sign of a soft landing that would justify the end of the current cycle of rate increases by the US Federal Reserve.

➡️ WTI Crude Oil continues to advance to new 3-month highs despite the “sell-off” that has plagued the markets lately. This could attract trend traders to the Logn side.

➡️ In the Forex market, the Australian dollar has been the strongest major currency since the open this week, with the Swiss franc the weakest, bringing the AUD/CHF currency cross into focus. The advance of the AUD demonstrates the improvement in risk appetite.

➡️ FOMC members Hawker and Bowman will speak publicly later today.

➡️ Today is a public holiday in Canada.

➡️ In the commodities market, cocoa futures will continue to be attractive on the Long side for trend traders, having reached a multi-year price high two weeks ago and have not yet fallen much from that high.

 

Credit by DailyForex.com

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