USD is knocking on the dollar of a breakout extension of it record breaking run, we up against 104 on Dollar index which is the 2017 high and we have so far rejected a few attempts since last week.
Market could be caught a little long here if US CPI falls for the first time this year when its released Wednesday US morning. A fall should help sentiment and perhaps prompt a short covering rally on US stocks and help most FX pairs rebound against the Dollar.
How long the market pulls back on the USD will rely on how long the US interest rates pull back. After the FED meeting we only got a 24 hour stock rally before new lows.
The market is lower and more oversold now so the chance of a 2-3 day relief rally on lower inflation is higher here.
If US inflation doesn't fall or god forbid continue to creep higher, the pain will continue and its likely we get a deeper stock correction and higher USD.
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Market could be caught a little long here if US CPI falls for the first time this year when its released Wednesday US morning. A fall should help sentiment and perhaps prompt a short covering rally on US stocks and help most FX pairs rebound against the Dollar.
How long the market pulls back on the USD will rely on how long the US interest rates pull back. After the FED meeting we only got a 24 hour stock rally before new lows.
The market is lower and more oversold now so the chance of a 2-3 day relief rally on lower inflation is higher here.
If US inflation doesn't fall or god forbid continue to creep higher, the pain will continue and its likely we get a deeper stock correction and higher USD.
easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration.
“Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party."
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