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Forex Today: US dollar index hits 10-month high

Forex Today: US dollar index hits 10-month high

Solid risk-off sentiment continues to dominate markets, with the US dollar advancing towards long-term highs against JPY, GBP, EUR, CHF and AUD.  

➡️ In the Forex market, the US dollar remains the strongest major currency as the US dollar index is on track to hit a new 10-month high after breaking above a previous key resistance level. The dollar just hit long-term highs against almost all major currencies:

  • The USD/JPY currency pair  made a new 11-month high yesterday at ¥149.70.
  • Yesterday the AUD/USD currency pair  it hit a new 11-month low of $0.6331.
  • Yesterday the EUR/USD currency pair  it hit a new 8-month low of $1.0488.
  • Yesterday the GBP/USD currency pair  it hit a new 6-month low of $1.2110.
  • Yesterday the USD/CHF currency pair  reached a new 6-month high of $0.9225.

 

The NZD and CAD are relatively strong and manage to maintain some of their value against the dollar. 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.

➡️ The price of  crude oil  continued to advance, with WTI reaching close to $95 a barrel yesterday. The rally is strengthened by the reduction of inventories in Cushing.

➡️ Stock markets remain weak, with the  HSI China traded today at a new 11-month low. The price action of most major indexes is bearish and many are near long-term lows.

➡️ Most commodities are trading lower in the current risk-off environment, with  They  which fell to a new 6-month low well below $1,900. However, some soft commodities are mostly holding value, but none are reaching new highs.

➡️ Final US GDP and unemployment claims data will be released today, which could impact the dollar.

➡️ Preliminary German CPI and Spanish Flash CPI data will be released today, which could impact the USD.

 

Credit by DailyForex.com

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