Week ahead in the markets: What to expect of Dollar Index?


Dollar Index (DXY) retreated from 101.34 (Apr 10 high) to 100.00 (Apr 13 low) and is seen trading around 100.40 levels in the Asian session today. The greenback is being offered across the safe haven assets, but remains bid against the EUR.

Geopolitical tensions are on the rise

Despite North Korea’s failed missile launch, the tense standoff between the US and North Korea continues. As per Reuters report, “The US, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test, US President Donald Trump's national security adviser said on Sunday.”

The heightened geopolitical tensions could keep the traditional safe havens well bid throughout the week.

Week ahead

Monday - China Retail sales, GDP

A weaker-than-expected China Q1 GDP could aggravate the selling in the risk assets.

Tuesday - US Housing data

Economists estimate that US housing starts declined 2.2% last month to an annualised pace of 1.26m units. Meanwhile, the industrial production rose 0.5% in March from the previous month when they were flat.

Thursday - Japanese trade balance

Japanese Yen strengthened in March; hence it will be interesting to see if the Japanese exports continued the winning streak. However, the data may not have any impact on the USD/JPY pair.

Friday - UK retail sales

A survey from Visa and British Retail Consortium data released earlier this month showed the Brits are feeling the pinch of the higher inflation. The official retail sales data, if better-than-expected, could strengthen the GBP/USD pair.

Sunday - French Presidential Election

The first round of the Binary event is a choice between Emmanuel Macron, the 39-year-old former Rothschild banker, and far-right leader Marine Le Pen, who leads the National Front. A Marine Le Pen victory in the first-round would heighten the odds of her being victorious in the second round and lead to a sell-off in the EUR/USD pair (Dollar Index).

Dollar Index Technical Levels

A break above 100.80 (50-DMA) would open doors for 101.34 (Apr 4 high). A daily close above the same would revive the bullish view and open up upside towards 102.26 (Mar 2 high). On the downside, breach of the support at 100.00 (zero figure) could yield a sell-off to 99.55 (Mar 22 low) and 98.86 (Mar 27 low).  

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD consolidates at three-week lows near 1.0800 Premium

EUR/USD consolidates at three-week lows near 1.0800

EUR/USD bottomed at 1.0775, the lowest level since November 15, and then rebounded towards 1.0800. The US Dollar remains resilient in the market despite lower yields and mixed US data. On Wednesday, more job figures are due with the ADP report and Unit Labor Costs data, ahead of Friday's NFP.


GBP/USD holds to losses around 1.2600

GBP/USD holds to losses around 1.2600

GBP/USD dropped further on Tuesday, reaching a one-week low below 1.2600 amid a stronger US Dollar. The Greenback holds firm even as the US Treasury yield slides. More US jobs data is due on Wednesday with the ADP report.


Gold extends slide, more pressure seen under $2,010 Premium

Gold extends slide, more pressure seen under $2,010

Following Monday's decline, Gold struggled to stage a convincing rebound and retreated below $2,020 in the second half of the day on Tuesday. Although the benchmark 10-year US Treasury bond yield is down more than 1%, renewed USD strength doesn't allow XAU/USD to limit its losses.

Gold News

Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX

Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX

Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders. The anticipation surrounding Spot Bitcoin ETF approvals is one of the key catalysts fueling the hype among BTC holders.

Read more

Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook

Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook

Nio (NIO) stock's initial 5% gain on Tuesday has transitioned to a 3% gain near $7.55. The Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago. 

Read more