Jump to content

MAJOR DXY RISK EVENTS


Recommended Posts

MAJOR DXY RISK EVENTS

Today we received better than expected GDP data out of the euro zone (Euro has the largest weighting in the dollar index) which has had a limited effect on the EUR/USD pair and the index as markets adopt a wait and see approach ahead of tomorrow’s ECB rate decision. Friday we see inflation data out of the US which is unlikely to have a significant impact on DXY even if inflation prints lower or in line with expectations as Jerome Powell mentioned the Fed is not looking for nuanced inflation data as a reason to slow the current trajectory of rate hikes.

Into next week we have ZEW sentiment and US PPI data before the all important FOMC meeting and retail sales data. Markets and a number of FOMC members favor a 50 bps hike for June and July but retail sales will watched fairly closely after Walmart and Target issued warnings around the strength of the consumer in their respective Q1 earnings reports. In addition, both stores have mentioned growing inventory supplies as concern for future profitability as consumers tighten their belts amid rising inflation.

US Dollar Outlook: DXY Bullish Reluctance Ahead of ECB Tomorrow

Customize and filter live economic data via our DaliyFX economic calendar

 

 

 

--- Written by Richard Snow for DailyFX.com

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,179
    • Total Posts
      90,702
    • Total Members
      41,288
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    mIftikhar
    Joined 29/01/23 18:13
  • Posts

    • Does anybody know the BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) equivalent with a GBP currency hedge? I want the interest yield but I don't want the currency risk.
    • Capital, win loss ratio. If you have a trading edge and you can consistently win 50% of your trades, so your winning 5 trades out of 10. So if your risking 1% of your capital per trade, out of your 10 trades 5 would be losers, so that’s 5% loss and realistically out of the 5 winning trades, some would make small profits, some break even and 1, 2 or 3 could run nicely IF you can let your profits run, basically your making money out of 2 trades out of the 10 trades (80/20 Rule Pareto principle) So a $20,000 acct risking 1% is $200 per trade, this will keep the trader with his trade risk based on being able to win 50% of his trades. A long term trend trader can win with 30% wining trade. Basically you need to know your numbers. Rgds Pete
    • Investing in stocks can be a great way to grow your wealth over time. However, there are different approaches that investors can take when choosing which stocks to buy. Two of the most popular approaches are growth investing and value investing. Growth Investing Growth investing is an investment strategy that focuses on buying stocks of companies that are expected to grow at a faster rate than the overall market. These companies are often in industries that are growing quickly, such as technology or healthcare. Investors who use this approach believe that these companies will be able to generate higher profits in the future, which will lead to higher stock prices. One of the main advantages of growth investing is that it can potentially provide higher returns than the overall market. However, it is also riskier than other investment strategies, as these companies often have higher valuations and more volatile stock prices. Value Investing Value investing is an investment strategy that focuses on buying stocks of companies that are undervalued by the market. These companies may be in industries that are out of favour or have recently experienced challenges, but they have strong fundamentals and a history of profitability. Investors who use this approach believe that these companies are undervalued and that their true value will be recognized in the future, leading to higher stock prices. One of the main advantages of value investing is that it can potentially provide lower risk than growth investing. However, it may also provide lower returns in the long run, as these companies may not have the same growth potential as companies in the growth investing category. Comparing Growth and Value Investing Growth and value investing are two different approaches to stock investing, each with its own advantages and disadvantages. Growth investing can potentially provide higher returns but is riskier, while value investing can provide lower risk but potentially lower returns. An investor may choose one approach or a combination of both. A portfolio that contains a mix of growth and value stocks can provide a balance of potential returns and risk. Conclusion Both growth investing and value investing can be effective ways to invest in stocks. The key is to understand the potential risks and rewards of each approach and to choose the one that aligns with your investment goals and risk tolerance. Analyst Peter Mathers TradingLounge™ 
×
×
  • Create New...