USD's full news week will end with PMI numbers on Friday. So far, we have seen mostly dollar strength and a 1% decline in the equities market. In a mixed market like this one, it's possible to play both sides of the coin in terms of risk. Traders will have to be more timely on entries though. Here is why both the USD and SPX500 could be buys going into next week.
Bullish Case
There are a handful of reasons for the Fed to remain hawkish on the dollar. For one, jobless numbers came out less than expected which is a good sign for the economy. That is good for the USD because it encourages the Fed to keep focusing on bringing inflation down.
On the other hand, strong economic news like falling jobless claims is good for stocks as well. Claims fell for the fourth week in a row, suggesting a healthy path towards a soft landing as the Fed planned.
Consumer confidence fell this week too, putting pressure on the stock market and pushed dollar bears aside. On top of that, the 10-year bond yield rate jumped to over 4%.
Longer term, it looks like the dollar is going to remain strong. The EdgeFinder's growing interest on yield rates has also brought a lot of attention to the dollar. March is a historically good month for the dollar at a +5 Buy.
Trade Setups
As of 9:10 am EST, the 10-Year bond rate is up ~3.50% while the dollar index remains flat. Some big news coming up in the next 24 hours for the USD, EUR and AUD. US consumer confidence is expected to fall from the last reading. We received a strange signal from the EdgeFinder that could […]
This week, we have seen a lot of market swings in sentiment along with uncertainty around economic stability. Because of this mixed mindset, investors have been shifting their interest towards gold. This article will cover why gold could continue to move higher. Medium to high impact news is coming up for all currencies such as […]
There are some major news ahead for the EUR, CAD, AUD and USD pairs this week. Wednesday will be another Fed rate decision forecasted to be another 25 bp. Here are some events set to come out tomorrow: EdgeFinder Analysis UC is still the EdgeFinder's favorite buy score along with USDZAR at +7. Retail is […]
