Thursday, 19 September 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
US Dollar Index advances to weekly highs near 98.20
Thursday, 23 May 2019 12:59 WIB | CURRENCIES | Indeks DolarDolar AS

The greenback, in terms of the US Dollar Index (DXY), is extending the up move beyond the 98.00 barrier, clinching at the same time fresh weekly highs.

US Dollar Index focused on Fedspeak, data

The index is posting gains for the third session in a row on Thursday, always on the back of simmering US-China trade concerns in spite of the absence of fresh news in past days.

The buck also met extra support after the FOMC minutes showed the Fed is firmly committed to its ˜patient™ stance, while the Committee did not even mention the probability of rate cuts and considered the lack of traction of consumer prices as transitory. Further out, member reiterated the monetary conditions could be tightened further in case the economy keeps the forecasted pace.

In the docket, the usual weekly report on the labour market is due seconded by advanced prints of manufacturing and services PMIs and New Home Sales. In addition, Dallas fed R.Kaplan (dovish), San Francisco Fed M.Daly (centrist), Atlanta Fed R.Bostic (centrist) and Richmond Fed T.Barkin (centrist) will participate in a discussion panel. All Fed speakers are non-voters this year.

What to look for around USD

With the US-China trade talks mired in the mud for the time being, investors™ attention have now shifted to the Chinese government and the likeliness of intervention in the Yuan, as the currency slowly approaches the psychological 7.00 mark without any progress in the negotiations, at least in the short-term horizon. On another direction, the FOMC minutes reinforced the ˜patient™ stance from the Federal Reserve and the ˜transitory™ lack of upside momentum in domestic inflation. In addition, the Committee ruled out rate cuts in the next months and left the door open for extra tightening if the economy evolves as planned. The positive outlook on the buck, in the meantime, stays unchanged and sustained by overseas weakness, its safe haven appeal, favourable yield spreads vs. the Fed™s G10 peers and the status of global reserve currency.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.07% at 98.16 and faces the next up barrier at 98.32 (2019 high Apr.25) seconded by 98.97 (78.6% Fibo of the 2017-2018 drop) and finally 99.89 (monthly high May 11 2017). On the other hand, a break below 97.73 (21-day SMA) would open the door for 97.28 (55-day SMA) and then 97.03 (low May 13).

Source: FXStreet

RELATED NEWS
Yen Rises against Dollar After BOJ Holds...
Thursday, 19 September 2019 15:17 WIB

The yen rose from a seven week low against the U.S. dollar on Thursday after the Bank of Japan kept monetary policy on hold, in the wake of the Federal Reserve™s overnight decision to cut rates. Th...

Dollar rallies as cautious Fed clouds rate-cut outlook...
Thursday, 19 September 2019 08:22 WIB

The dollar stood tall on Thursday after the U.S. Federal Reserve cut rates by 25 basis points, as expected, but its chairman signalled a higher bar for future rate cuts. The greenback touched a seven...

Sterling edges back from six-week high, BoE in focus...
Wednesday, 18 September 2019 15:51 WIB

Sterling edged lower on Wednesday after climbing to a new six-week high on hopes for a last-minute Brexit deal, while investors turned their attention to the Bank of England meeting on Thursday. The ...

Dollar holds gains as oil shock eases, Fed in focus...
Wednesday, 18 September 2019 08:16 WIB

The dollar traded near a seven-week high versus the yen as oil markets recovered from a supply shock, but the focus is firmly on a U.S. Federal Reserve meeting later on Wednesday that is widely expect...

Dollar Broadly Higher Ahead of ZEW, Fed Meeting...
Tuesday, 17 September 2019 15:20 WIB

The dollar was mostly higher in early trading in Europe Tuesday, as fears of a sustained spike in oil prices and conflict in the Persian Gulf undercut risk assets ahead of the U.S. Federal Reserve™s...

LATEST NEWS
U.K. retail sales slip 0.2% in August

U.K. retail sales fell 0.2% in August, as the prior month's gain from Amazon Prime Day reversed with a drop in non-store retailing. Economists polled by FactSet had forecast a 0.2% dip. The year-on-year growth rate slowed to 2.7% from...

Gold Holds Drop as Investors Pick Over Fed's Signals on Rates

Gold held a drop after Federal Reserve policy makers offered divergent views on more monetary easing after delivering another rate cut, casting some doubt over a key driver of bullion's surge to a six-year high. After Wednesday's fall, prices...

Hong Kong stocks end with fresh losses

Hong Kong stocks fell for a fourth day in a row Thursday after the Federal Reserve cut interest rates but investors were left guessing about the possibility of more reductions this year. The Hang Seng Index slipped 1.07 percent, or 285.17 points,...

POPULAR NEWS
Gold Settles at a More Than a 1-Week High as Historic Oil Outage Rattles investor Nerves
Tuesday, 17 September 2019 01:34 WIB

Gold futures finished solidly higher on Monday, at their highest price in just over a week, after an attack on Saudi Arabian oil production sent oil...

Gold Notches Second Straight Gain, Adds to Climb Toward 1-Week High
Wednesday, 18 September 2019 01:26 WIB

Gold futures on Tuesday marked a second gain in a row, extending a climb to the highest price in about a week. Traders continued to monitor...

Gold Posts Third Straight Gain Ahead of Fed Policy Decision
Thursday, 19 September 2019 01:07 WIB

Gold posted a third straight gain before the conclusion of the Federal Reserve meeting where policy makers are widely expected to cut interest...

Gold holds steady as focus turns to Fed meeting
Tuesday, 17 September 2019 20:17 WIB

Gold prices were steady on Tuesday as investors adopted a wait-and-see approach ahead of the U.S. Federal Reserve™s two-day monetary policy...