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

Blockchain Agency Dinari Secures $12.7M to Simplify Investing in U.S. Inventory Market

Dinari Funding:- The U.S. inventory market is the biggest equities market on this planet. It serves as...

Rush Enterprises, Inc. (RUSHA) Q1 2025 Earnings Name Transcript

Rush Enterprises, Inc. (NASDAQ:RUSHA) Q1 2025 Earnings Convention Name Might 1, 2025 10:00 AM ET Firm Individuals Rusty Rush - Chairman, President & CEOSteven Keller - CFO Convention Name Individuals Daniel Imbro -...

Analysts Cite Sturdy Pure Product sales, Private Labels As Key Tailwinds

Vishal Mega Mart Ltd.’s internet income for the fourth quarter of the financial 12 months 2024-25 surged 88% year-on-year. Brokerages attributed the sturdy effectivity to sturdy festive-led demand, improved retailer productiveness, and the...

MoviePass launches Mogul, a each day fantasy sports-inspired, blockchain-based platform for film buffs, and says over 400K folks have signed up for early entry...

Lauren Forristal / TechCrunch: MoviePass launches Mogul, a each day fantasy sports-inspired, blockchain-based platform for film buffs, and says over 400K folks have signed up for early entry  —  MoviePass, the startup that...

Public firms have already acquired 96% of all Bitcoin to be mined in 2025

Publicly listed firms have purchased roughly 157,957 Bitcoin (BTC) as of Might 1, accounting for 96% of the 164,250 BTC projected to be mined all year long.Bitcoin Treasuries knowledge reveals that non-public firms...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com