REFRESHING - I usually do my best to avoid market reading over the weekend, but I caught an update from Citi on the US Dollar and was left feeling a little better about my US Dollar outlook. Of course, we really don't know which way the market will go, but with all of this US Dollar bearishness in 2017, I found the piece to be rather refreshing. As you all know, I have said that I still believe there is a big run ahead for the Buck. And Citi feels the same way, echoing much of the sentiment I have already shared. The big US Dollar negative story this year has been Trump protectionism and comments of a US Dollar that is too strong out from this new administration. Of course, these comments need to be taken seriously, but at the same time, they need to be taken with a major grain of salt.

THE VIEW - As per Citi, ultimately, the administration can say whatever it wants about a weaker Dollar, but if Trump goes ahead with sweeping tax reform and aggressive fiscal stimulus and if the Fed continues to move towards higher rates, while the rest of the developed economies stand still, nothing Trump says will do anything to stop the force of the US Dollar. These fundamentals can not be denied and the Dollar will not be able to ignore them if things move in this direction. I think it's also important to remember that despite what stock markets continue to do, there is clearly plenty of stress out there around the globe and should we see that stress manifest by way of the equity market, we will unquestionably see a wave of safe haven flow that will leave the US Dollar as a primary beneficiary. I believe GOLD will also rally in this environment, but the US Dollar will be the currency of choice, especially with the SNB and BOJ doing whatever they can to avoid any lasting appreciation in the Franc or Yen respectively.

STACKED - Moving on, today's economic calendar is absolutely jam packed. I expect we will see movement out there, particularly after a slower Monday and particularly with so much going on across the globe. China inflation, German GDP, UK CPI, German ZEW and Eurozone GDP all stand out before the market then turns its attention to the Fed Chair, with Live Link. I always enjoy watching this testimony as the Q&A is generally quite entertaining. Just as one final note for the day, I recently read an The Data That Turned the World Upside Down on the subject of the EU referendum and US election and the influence of psychometrics and social media as a method to influence the results of these major stories in 2016. It's absolutely fascinating and you should definitely check it out when you have time.

IMPORTANT NOTE: Trading forex, futures or futures options carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This website and its information does not take into account your investment objectives, financial situation, or needs. Before deciding to trade forex, futures or futures options you should you should carefully consider your investment objectives, level of experience, and risk appetite, as well as obtain advice based on your unique situation before making any investment decision based upon this forum or any information contained within. This forum and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. JKonFX is merely providing this website for your general information. Past performance is not necessarily indicative of future results. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. JKonFX will not be responsible for any losses incurred on investments made by you as a result of any information contained in this website. You should be aware of all the risks associated with forex, futures, and futures option trading, and seek advice from an independent financial advisor if you have any doubts. In addition, the information contained on this website is not intended to be investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 


GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors