US Dollar Controls the Trend in Unstable Market Conditions

Azeez Mustapha

Updated:

UNLOCK DAILY FOREX SIGNALS

Select a Plan

£40

 1-month subscription

Select

£30

 3-month subscription

Select

£21.5

 6-month subscription

Select

£399

 lifetime subscription

Select

£50

 Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


US Dollar: The American economy was supposed to be pretty smooth sailing from Labor Day onward, with solid job gains and health spending growth. Instead, the economy is battling turbulent undercurrents brought on by the Delta variant, which resulted in a slowdown in hiring and a drop in consumer mood as the year progressed. We are optimistic that the economy will remain on track, but it will need time and patience.

This week, we took a look back at a time when Delta wasn’t a major problem. Job opportunities reached new highs in July, according to the Job Opening and Labor Turnover Survey (JOLTS). Even if Delta-related fears caused a pause in August, demand for workers remained high.

This means that the number of available jobs outnumbered the number of unemployed in August, implying that firms may need to find more inventive ways to boost employment. Because of the pandemic’s residual consequences, the job economy will likely take longer to fully recover.

Economists point to several reasons why workers aren’t taking advantage of what appears to be an endless demand for their services. One of them, pandemic-related emergency jobless assistance, has come to an end this week. It remains to be seen whether this will result in an influx of willing workers. There is no indication that states that terminated the extra benefits before the national deadline witnessed a large increase in employment.

In this week’s Beige Book report, safety concerns were mentioned frequently, pointing to a drop in demand for activities that rely on social contacts, such as dining out, travel, and tourism. The slowdown could lead to a reversal of the current shift in consumption from goods to services.

Overall, markets are choppy on both the supply and demand sides as a result of Delta. However, this, like previous waves, is likely to pass, and when it does, the recovery will accelerate. The Fed will aim to keep inflation on a steady path, which will likely need a lowering of the rate of accommodation and relaxation of asset purchases by the end of the year.

US Dollar Index Recovers Shy of 91.78 Support Level

Last week, the US dollar index recovered ahead of 91.78 support, indicating some near-term bullishness. There is a chance that the gain from 89.53 to 93.72 will be extended, especially if risk attitudes deteriorate. Overall, though, we continue to like the 89.20 patterns as a three-wave consolidation pattern.

As a result, the 38.2 percent retracement of 102.99 to 89.20 at 94.46 is a significant obstacle for DXY to surmount before becoming positive in the medium term.

Breaking through 91.78 support, or being rejected by 94.46 in the case of another advance, would suggest that the entire downtrend from 102.99 (2020 high) is ready to resume through 89.20, and maybe through 88.25 (2018 low) as well.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • 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
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *