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Forex Today: US Dollar Index gains while 101.56 holds

Forex Today: US Dollar Index gains while 101.56 holds

The US dollar remains stable, with the key support level at 101.56 surviving a test.

➡️ The weak rise of the US dollar continues. However, the Dollar lacks a convincing long-term trend and currently appears stuck between  support at 101.56, which held effectively again , and resistance near 102.375.

➡️ Global stock markets are mixed with some decline, perhaps driven by weak data on Chinese exports. The HSI fell nearly 1.5% today.

➡️ WTI Crude Oil appears to be starting to complete a bearish reversal compared to its recent 3-month high price, with accelerated bearish momentum looking technically likely.

➡️ In the Forex market, the US Dollar has been the strongest major currency since the Tokyo open, with the Japanese Yen the weakest, putting the USD.JPY currency pair in focus. The Japanese yen has been generally weaker since the Bank of Japan tweaked its yield curve control program, with a new impetus given by Governor Ueda's admission that currency issues are considered in making policy decisions.

➡️ FOMC member Bowman reiterated yesterday that the Fed would likely need to make further rate hikes to fight inflation. US CPI data will be released tomorrow.

➡️ There will be releases of Chinese CPI and NZD Inflation Expectations data later today.

➡️ In the raw materials market, Cocoa futures will continue to be attractive on the Long side for trend traders, having reached a multi-year price high yesterday, but then falling sharply over the remainder of the day's session to close at a 9-day price low.

 

Credit by DailyForex.com

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