This week's news reported mostly good numbers so far for the USD as PMI beats expectations as well as unemployment claims. The dollar dipped as a result of this, and investors may be looking to more risk-on trades for the remainder of this week.
The dollar appears weaker on this news, however, it also looks like the better bet against certain pairs like AUDUSD and USDJPY. The USD struggles against CAD, the euro and the pound. I think this news is probably a potential short play on most of the major pairs, but we will also have to look to the end of the week tomorrow to see what the US unemployment rate will be along with NFP.
GU crossing above both the 50 and 200 DMA today while nearing a falling trend line on the 1D chart. A break above this level would be very bullish for the pair as the USD looks weaker with inflation concerns.
EURUSD on the 1D chart has already broken a falling trend line and crossed above its 50 DMA. The pair looks like it has a lot of momentum going into tomorrow, but it depends on whether the US can beat unemployment rate or not. A beat would probably mean bullishness for this pair as the Fed may start looking to taper earlier or raising rates sooner.
Although this pair has had a considerable run to the upside, the USD still looks stronger than the buck as the US is rebounding much quicker than Australia. But, this level of resistance here around .74200s is going to be a big decider in the pairs direction. A close above this level could mean a larger move to the upside.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]