In this market update, I highlight the shifting dynamics around the US Dollar Index, which has seen a significant change in sentiment. Just a month ago, the dollar faced negative headlines, driven by fears of BRICS nations shifting global currency reserves and potential economic downturns. However, recent news, including Donald Trump’s pro-dollar stance, has fueled renewed confidence, pushing the dollar toward the top of its weekly range.
As the dollar strengthens, opportunities are emerging across multiple currency pairs and commodities. For instance, the Euro (EUR/USD) and the Aussie Dollar (AUD/USD) are at key weekly support levels, signaling potential for reversals if dollar momentum slows. Gold also shows resilience at daily support, with possible gains if profit-taking on the dollar unfolds. Lastly, the USD/CAD is testing weekly resistance, creating an opening for traders watching the dollar’s next move.
With the US CPI report expected, I advise traders to monitor this data closely, as weaker inflation could prompt further profit-taking on the dollar. To keep up with these pivotal levels and market insights, join our live trading feeds or engage with senior market analysts like Duncan Cooper in real-time webinars.
RISK WARNING: Foreign exchange and derivatives trading carry a high level of risk. Before you decide to trade foreign exchange, we encourage you to consider your investment objectives, your risk tolerance and trading experience. It is possible to lose more than your initial investment, so do not invest money you cannot afford to lose。 ACY Securities Pty Ltd (ABN: 80 150 565 781 AFSL: 403863) provides general advice that does not consider your objectives, financial situation or needs. The content of this website must not be construed as personal advice; please seek advice from an independent financial or tax advisor if you have any questions. The FSG and PDS are available upon request or registration. If there is any advice on this site, it is general advice only. ACY Securities Pty Ltd (“ACY AU”) is authorised and regulated by the Australian Securities and Investments Commission (ASIC AFSL:403863). Registered address: Level 18, 799 Pacific Hwy, Chatswood NSW 2067. AFSL is authorised us to provide our services to Australian Residents or Businesses.
Recommended Content
Editors’ Picks
AUD/USD tumbles toward 0.6400 amid weak Australian Q3 GDP and Chinese PMI
AUD/USD is under intense selling pressure, fast-approaching 0.6400 early Wednesday. The pair bears the brunt of weaker Australian Q3 GDP data, disappointing Chinese Caixin Services PMI and US-Sino trade worries. Focus shifts to more US data and Powell's speech.
USD/JPY consolidates the uptick to near 150.10
USD/JPY is back below 150.00 in Wednesday's Asian session, struggling to extend the latest leg higher as bets for a December BoJ rate hike underpin the the Japanese Yen. However, the downside remains capped amid increased haven demand for the US Dollar on growing tariff war fears.
Gold price traders await Powell's speech for rate cut cues
Gold price extends its sideways consolidative move during the Asian session on Wednesday as traders opted to wait for Fed Chair Jerome Powell's speech. Apart from this, the US NFP report on Friday might provide cues about the interest rate outlook in the US and provide a fresh impetus to the non-yielding XAU/USD.
Paul Atkins shows reluctance to replace SEC Chair Gary Gensler
Paul Atkins, regarded as a leading candidate to succeed Gary Gensler as Chairman of the Securities & Exchange Commission, has reportedly expressed a lack of enthusiasm for the position.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.