The US dollar loses vigor as bear pressure remains unchanging. The dollar index continued to weaken even at the start of Monday morning. Although a positive set was seen at the start of the session, the price stalled lower, pushing the index lower. The US dollar fell following the result of the protest across China, owing to the “zero cases” COVID-19 policy.
These approaches by China have been a source of nervousness among several market investors globally due to the lockdown, which is affecting the global economic recovery. Despite the impact of currencies such as the Australian dollar, the US dollar is strengthening. This appears to be on the decline, which increases support for the greenback. Nevertheless, the Japanese Yen has proven to be sharp this week by outperforming the Greenback. This has made it quite far ahead of the US dollar at the moment.
US Dollar Upcoming Events
The previous week showed how the dollar slid through the effects of holiday trading on Black Friday and Thanksgiving. However, with the dovish tip coming from the Federal Reserve meeting, The economic data highlighted by the US GDP and the PCE report on Wednesday will determine turnout this week. The Fed’s Minute provided a glimmer of hope for the equity market, but the bond market is still expected to be uneasy.
The report is implying that the interest rate is still set to shoot up for some time. However, as economic activities lessen, a decline will be observed as well. Since this week is largely packed with high-impact economic events, with the NFP (non-farm payroll) also being a highlight, there will also be a major influence on the US Dollar Index’s sentiment. A bounce from a bearish swing could also be in view, and traders should be on the lookout.
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