Is US Dollar euphoria started to fade out
US Dollar euphoria started to fade out after almost 6 weeks, the steady growth and the bull’s party is probably coming to its end.
The geopolitical events have a major impact on the investors trust about the Dollar and that it is backed up by the fact that the popular currency lost against the most major pairs.
Even though the USD retraced, nonfarm payrolls which was the most important report last week didn’t have any major impact for the FED.
The Wages went up by 0.3%, jobs had also a steady growth in May and the unemployment rate declined.
Now President Trump’s aggressive decisions about the global trade war has made the USD stronger but for how long? We are waiting for the counter measures of the rest of the nation’s which they may trigger a chain reaction that may probably hit the US Dollar and create a panic in the US market giving the opportunity for the investor to look for a safer asset to invest.
Chairman Powell will probably raise interest rates next week due the fact of the steady jobs growth.
We are awaiting for this week’s non-manufacturing ISM report which may show a much better and stronger performance in the service sector.
Now is more probable for the Fed to gradual increase the interest rates and according to Fed fund futures, investors see a probability of 75% chance to get another hike in September or November and even December.
On EURUSD Daily we can identify a mature koumo break out with the price been below the cloud, tekan sen and kijun sen seem to be in a bearish formation and the chikou span is below the price.
The picture here may appear bearish for now but to be able to spot any potential bearish signals price needs to bounce on kijun sen.
About the Author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars, here.
Disclaimer: Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and education purposes. Personal Opinion of the Author does not represent and should not be construed as a statement or an investment advice made by TeleTrade. All Indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
Risk Warning: Investment services are provided by TeleTrade-DJ International Consulting Ltd, a Cyprus Investment Firm under reg. number HE272810 operating in accordance with MiFID, under license 158/11 by the Cyprus Securities and Exchange Commission. Trading in leveraged derivative financial instruments carries a high level of risk and may not be suitable for all investors. Past performance is not a reliable indicator of future results. Indiscriminate reliance on informational or historical materials may lead to losses.