Slobodan Drvenica
Windsor Brokers
US Dollar Index
The dollar index remains steady and holding within a narrow range just under 6-month high on Monday.
Larger picture shows near-term action moving in the sideways mode for the third consecutive week, as bulls faced strong headwinds on approach to key barriers at 105.13/47 (Fibo 38.2% of 114.72/99.20 / base of thickening daily Ichimoku cloud.
Traders also reduced speed ahead of key events, last week’s US inflation data and ECB rate decision and coming policy decisions of the Fed, BoE and BOJ this week.
Markets particularly focus on the US central bank, which is widely expected to keep rates on hold in September, but signals about their next steps will be crucial for dollar’s near-term direction.
Should Fed follow the ECB’s way and announce that the tightening cycle is over and possible start of rate cuts to be expected in mid-2024, the dollar will likely lose ground.
On the other hand, hawkish tones from Fed should not be ruled out as recent data show that the economy is still in a good shape and labor sector is tight, while inflation, although still elevated, being in downward trajectory, which contributes to scenario of one more hike by the end of the year and keeping high interest rates for extended period, until inflation returns to 2% target.
The greenback should benefit in such scenario, with firm break of 105.13 Fibo barrier to generate bullish signal and spark fresh acceleration higher.
Res: 105.13; 105.47; 105.85; 106.22
Sup: 104.45; 104.17; 103.86; 103.34
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.