Forex Morning Briefing: The US Dollar (.DXY) Index

Forex Morning Briefing: The US Dollar (.DXY) Index
Forex Morning Briefing: The US Dollar (.DXY) Index

$DXY, $EUR, $JPY, $GBP, $AUD

Commentary: .DXY ticked lower after downbeat US housing data and dovish FOMC mins. PE

The US Dollar (.DXY) Index ticked lower after downbeat US housing data (building permits unexpectedly dropped by 4.1% in July, undershooting the forecast for 2% fall and well below 9.2% increase in June, while Housing starts were down 4.8% in July against foretasted rise of 0.5% and increase of 7.4% in June).

Weaker than expected data so far did not show stronger impact USD Bulls which were boosted by strong retail sales Tuesday.

The UUSD continues to struggle at psych mark at 94.00 reinforced by falling daily Kijun-sen.

Wednesday’s repeated rejection at 94.00 and Tuesday’s failure to close above 93.85 (Fibo 38.2% of 96.24/92.37) suggests that strong recovery rally from Monday might be running out of steam on the FOMC mins.

Traders expected the Fed to provide more guidance about next steps and timing on massive balance sheet reduction as well as firmer signals about possible rate hike towards the end of the year.

The dovish tone from the FOMC mins allowed for deeper pullback exposing  support at 93.30 the daily Tenkan-sen.

Gold was a beneficiary

Stay tuned

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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