The dollar index is not all what you might think it is - BBH

Ross J Burland FXStreet

Analysts at Brown Brothers Harriman explained that the Dollar Index is not a trade-weighted measure of the dollar.

Key Quotes:

"It is, as we have noted, heavily weighted toward Europe, and two of the US largest trading partners, Mexico and China, are not even included."

"The gap created by the sharply lower opening on April 24 remains unfilled."

"The gap was entered, but not closed, and the Dollar Index retreated to the lower end of its two-week range."

"The MACDs and Slow Stochastics are about to turn higher."

"Still, the near-term risk may extend toward 9785, which is the 50% retracement of the rally since last May's low 91.90."

"A move back above 99.30 may be constructive (~ 200-day moving average, and 38.2% retracement), but the top of the gap is 99.65."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.