TRENDING:

XAU/USD

EUR/USD

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

Omkar Godbole FXStreet Contributor

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).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

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

Broker Reviews

Editor's Picks