US Dollar Regains Bullish Momentum, as Market Risk Mood Slumps
Login

US Dollar Regains Bullish Momentum, as Market Risk Mood Slumps

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The recent market risk sentiment boost that spurred the S&P 500 to new record highs, caused the US to raise $120 billion in coupon sales and prompted the European Central Bank (ECB) to promise to “significantly” boost bond purchasing programs, appears to have fizzled out ahead of the weekend. Meanwhile, the US dollar index (DXY) rebounded on Friday as interest rate differentials expanded further.

Although price action across the market appeared choppy, a few trends have emerged. The US Treasury yields (3yr through 30yr) have been on the rise for the sixth consecutive week. The CRB Index has also risen for the seventh consecutive week and is up over 15% on a year-to-date basis. Crude oil appears to have fallen into consolidation over the past few days, following its dramatic rally since it bottomed out on November 2.

The greenback rounded off the week on a positive footing. This rally was likely because of the ECB’s commitment to stepping up bond-buying efforts and the large US infrastructure negotiations tailing the recently-approved $1.9 trillion stimulus measure. Additionally, an executive order from the office of the US President requested that all States ensure that all willing adults can be vaccinated against the coronavirus by early May.

Event-Filled Week for the USD and EUR
The EUR/USD appears to have strongly rebounded from a yearly low at 1.1835 and is now on a journey to reclaim the 1.2000 psychological resistance.

We could see a bullish resumption in the pair at the open of the market later today, as we expect an event-filled week.

For the USD, the NY Empire State manufacturing data will get published tomorrow. Industrial Production and Retail Sales will dictate the greenback’s price dynamics on Tuesday and Wednesday. While the weekly Jobless Claim and Philadelphia FED Manufacturing PMI figures will take Thursday.

However, the main event for the week is the FED monetary policy decision, slated for Wednesday.

Meanwhile, the EUR’s price action will get influenced by inflation figures from the Eurozone, the ZEW Economic Sentiment figures, and COVID-19-related developments.

 

You can purchase crypto coins here: Buy Coins

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News