Jump to content

US Dollar Latest – USD Remains Bid as Risk Markets Continue to Sour


Recommended Posts

Jun 30, 2022 | DailyFX
Nick Cawley, Strategist

US DOLLAR PRICE AND CHART ANALYSIS

  • The short-term US dollar downtrend has been broken convincingly.
  • Risk-off sentiment dominates ahead of portfolio rebalancing.
  • US PCE is the next look at inflationary pressures.

Dollar catches a break after bruising week as investors turn risk averse By  Reuters

The US dollar (DXY) looks set to test highs last seen in December 2002 as risk markets continue to crumble. The Nasdaq 100 is 1.7% lower in the European session and is within striking distance of the June 16 low at 11,025, and a break below here would leave the late October/early November 2020 double low comes into focus. The scenario is the same in the DAX 40, currently -2.5% on the session and nearing important support, while the S&P 500 is down 1.4% today and is less than 3% away from printing a fresh 18-month nadir. Against this weak backdrop, the US dollar is moving higher on its haven asset of choice status.

Later today we have monthly, quarterly, and half-year portfolio rebalancing which may add extra volatility around 16:00 UK. Portfolios with a 60/40 stock and bond mix will need to sell overperforming assets and buy underperforming assets to keep this stock-to-bond ratio in line.


The latest US PCE data are released at 13:30 UK today and are expected to show that US price pressures eased a fraction in May on a year-on-year basis. The monthly core figure is expected to move 0.1% higher to 0.4%. A full report including market reactions to these numbers will be posted on the DailyFX homepage shortly after these numbers are released.

 

The short-term market downturn in the US dollar (DXY) was broken with ease at the start of the week and the move higher continues today. The DXY is now less than 50 pips away from making a fresh 20-year high as risk-averse traders default back to the greenback. The PCE data will help to define the short-term move but with risk markets seemingly stuck in a bear trend, the US dollar looks set to print fresh two-decade highs in the coming weeks.

US DOLLAR (DXY) DAILY PRICE CHART – JUNE 30, 2022

US Dollar Latest – USD Remains Bid as Risk Markets Continue to Sour

What is your view on the US Dollar – bullish or bearish?

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
  • image.png

  • Posts

    • The mischievous amphibian who became a meme legend? Well, meet Apu, his wide-eyed, optimistic cousin, taking the internet by storm – and now, perhaps, the world of finance. Apu, also known as Peepo or Helper, is a kinder, gentler Pepe variant. Tired of the often-scammy memecoin scene, Apu (or rather, Apu's devoted community) decided to create something different: $APU, a "fairly launched, fully transparent coin" built by and for "all frens." Here's where things get interesting. $APU's narrative is one of resilience and community power. Fueled by the cryptocurrency community's enthusiasm, $APU was initially launched with the best of intentions. However, the dream took a nasty turn when the original developer pulled the rug – a disheartening scenario for many crypto enthusiasts. Today, $APU stands as a testament to community empowerment. It's a beacon of hope for projects facing similar challenges, a reminder that collaboration and resilience can transform setbacks into stepping stones. It's also worth noting that another community-driven memecoin, $MASSA, recently found a home on the Bitget exchange. Could this be a sign of things to come for $APU? What are your thoughts? Does Apu's story inspire you? Can a memecoin truly become a legitimate force in the volatile world of cryptocurrency? Share your thoughts and predictions in the comments below!
    • The price shown on the graph is the price after the IG's fee taken. That is the reason for discrepancy.
    • I am a relatively newbie. I have seen similar and also have seen automated closed position has a loss though the close price I have set was above the price I have bought. After about 6 months with a lot of mysterious losses though my closing price was above the opening price, I discovered this was because of the amount charged for opening/closing a position. This is right below BUY and SELL boxes on the right in very small font. This amount vary from  0.9 to 33 or more depending on the level of trading at the time you open or close. It also happens (god knows why it is set to be so, except that the trader is not watching) when there is a lot of buying and selling going on, like an important news has suddenly been out and the result was not the market expected. As a result, I delete all my automated BUY/SELL values before I stop trading for the day. Remember, the the software is set up to favor the IG, not the retail seller. That is why 70% or more end up in loss.  
×
×
  • Create New...
us