Dollar looking lower [Video]
|Markets finished last week in risk-on mode after US CPI came out at 2.9%, right in line with expectations. Since there were no surprises in the report, the dollar moved lower, as Powell will most likely be looking to cut rates by 25 basis points this week, with even a chance of a 50 basis point cut. As a result, the dollar is coming down, while US stocks are trading near the highs. Looking at the dollar index, we are anticipating further decline after a perfect turn from the 61.8% level. In fact, the current sideways move around 97.60 suggests a its a minor correction, with the risk of heading lower this week, potentially below 97.20. At the same time, US yields are a bit higher, but resistance for a wave four flat correction is around 4.10%.
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.