Can the dollar retracement run?


There’s a consistent theme of US dollar weakness across the board this week. That goes along with falling yields and rising gold.

It’s a picture that looks more like a broader turn than anything we’re seeing in the stock market, though some of the strength into Friday’s close is promising.

I’m not a fan of the dollar index but it paints a good picture at the moment and shows the potential for a retracement, even within the ongoing trend.

A dip to 101 would be a standard-sort of 38.2% retracement from the February lows.

On the flipside, the the old high combined with the 2017 high formed something of a double top and we might just be seeing a retest of that before another leg higher.

What I think we’re seeing play out in the bigger picture is that a global central banks are being forced to join the Fed in tightening. It may not be at the same pace but there wasn’t much hiking priced in for Europe but now there is. So far the BOJ is holding the line but the SNB showed cracks this week.

Secondly, the US dollar benefited from a special bid due to technology stocks. That bubble is bursting at the moment and it will draw money out of the US during the next wave of investing, which will be in value stocks.



Source link

Related articles

Samsung is giving freely free 27-inch Odyssey G55C displays – this is the right way to qualify

Whether or not you are a PC gamer trying to improve your setup or choose ultra-wide screens for productiveness, you may snag the Samsung Odyssey G9 49-inch curved gaming monitor for $500 off...

Prop Agency FunderPro Appoints Former Swissquote COO to Lead Enterprise Improvement

Zoltan Nemeth has taken on a brand new function as Head of Enterprise Improvement at FunderPro, a proprietary buying and selling agency. He introduced the transfer in the present day (Friday) on LinkedIn.Nemeth wrote: “I’m...

Solana Faces Stiff Challenges Whereas Lightchain AI Charts an Thrilling New Path

PRESS RELEASE. The cryptocurrency area is shifting quick, and the panorama isn't wanting groundbreaking developments. Whereas Solana ( SOL) has loved explosive progress up to now, the cracks are beginning to present. Solana’s...

Expro lands multi-year TRS contracts with two super-major operators in U.S. Gulf

Expro has been awarded multi-year Tubular Working Providers (TRS) contracts by two main Tremendous-Main operators within the Gulf of America/Gulf of Mexico, protecting each deepwater drillships and platform rigs. Collectively valued at over $80...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com