The US Dollar tightens range after a grind higher to a fresh 11-week high. US equities retrace further from all-time highs as the Fed might not cut that much as first anticipated. The US Dollar index trades in a tight range on Tuesday after failing to break above 104.00.
EUR/USD finds it difficult to gather recovery momentum and trades near 1.0800 on Tuesday as the US Dollar benefits from the risk-averse market atmosphere. ECB President Lagarde's cautious remarks about inflation outlook helps the pair limit its losses.
GBP/USD loses its traction and trades in negative territory after failing to stabilize above 1.3000 earlier in the day. The souring market mood doesn't allow the pair to stage a decisive rebound as the market focus remains on geopolitics and central bank speak.
The Japanese Yen continues to be undermined by the uncertainty over the BoJ's rate-hike plans. Rising US bond yields turn out to be another factor that is weighing on the lower-yielding JPY. Intervention fears and a softer risk tone limit losses for the JPY, capping the upside for USD/JPY.
Gold continues its uptrend and trades near the record-high it set at $2,740 as the conflict in the Middle East remains unabated, while markets assess the changing outlook for global interest rates. Technically, XAU/USD trends higher as a multi-time-frame uptrend extends.
Crude Oil struggles to uphold $70.00 for more than day, with more downside expected. Traders expect longer sluggish demand as markets reprice Fed rate cut prospects. The US Dollar Index broke above 103.80 and tested 104.00, primed for more upside.
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When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
