- DXY alternates gains with losses in the 100.30 region.
- US-China trade war remains in centre stage on Monday.
- Powell, FOMC minutes, flash PMIs, Fedspeak of relevance this week.
The greenback, when tracked by the US Dollar Index (DXY), is looking for direction in the 100.30 area at the beginning of the week.
US Dollar Index focused on trade, data
The index is trading within a tight range on Monday, as investors continue to gauge the recent pick-up in the US-China trade conflict along with further progress of the re-opening of the economy amidst the coronavirus crisis.
In fact, risk appetite trends continue to look to the renewed effervescence between the US and China following latest news that the White House restricted the access of Chinese giant Huawei to American-made chipsets on Friday. The news adds to the already escalating conflict after the Trump Administration criticized China for the mishandling of the coronavirus outbreak.
Later in the week, all the attention will be on the testimony by Chief Jerome Powell along with Fedspeak, FOMC minutes, Initial Claims and the Philly Fed manufacturing index.
What to look for around USD
The greenback has started the week on a cautious note, always vigilant on the US-China trade front and the gradual return to some normality in the US economy. Supporting the momentum around the greenback emerges the current “flight-to-safety” environment, helped by its status of global reserve currency and store of value. The dollar has also derived extra support after Fed’s J.Powell ruled out negative rates at his recent testimony.
US Dollar Index relevant levels
At the moment, the index is losing 0.01% at 100.35 and faces the next support at 99.49 (55-day SMA) followed by 99.12 (weekly low May 11) and then 98.57 (monthly low May 4). On the flip side, a breakout of 100.93 (weekly/monthly high Apr.6) would open the door to 101.34 (monthly high Apr.10 2017) and finally 102.25 (monthly high Mar.9 2017).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.