The DXY is possibly the most followed index on EARTH.
Trading is not just about looking at chart and candles. I think it is about looking for answers beyond the candles. The DXY has been trending the EFFR but suddenly stop doing so sometime in 09/2022. Why did this happen??? Perhaps it is about the 'potential' Fed PIVOT . Perhaps not for it is not.
FX moves up and down in short/medium term. This fluctuation is the cause of confusion that leads to monetary losses simply because traders would change their direction of trades frequently. For example, DXY is trending downward since 09/2022 but since last week, there was a rise. Perhaps many would have been thinking to go LONG from now on.
Would it be GREAT is you can have something to refer to that gives you a sense of direction and that does not 'fluctuate' so frequently???
If you can find the answer, then perhaps you may have found out what drives FX.
Good luck on your trading journey :)
Trading is not just about looking at chart and candles. I think it is about looking for answers beyond the candles. The DXY has been trending the EFFR but suddenly stop doing so sometime in 09/2022. Why did this happen??? Perhaps it is about the 'potential' Fed PIVOT . Perhaps not for it is not.
FX moves up and down in short/medium term. This fluctuation is the cause of confusion that leads to monetary losses simply because traders would change their direction of trades frequently. For example, DXY is trending downward since 09/2022 but since last week, there was a rise. Perhaps many would have been thinking to go LONG from now on.
Would it be GREAT is you can have something to refer to that gives you a sense of direction and that does not 'fluctuate' so frequently???
If you can find the answer, then perhaps you may have found out what drives FX.
Good luck on your trading journey :)
Comment:
Anyone got an answer :)
Comment:
Comment:
There seems to be chatter in the MSM again that the Fed now expect INFLATION to be stickier and might hold rates HIGHER and LONGER.
Look at the above, the higher the EFFR, the lower the DXY.
A lower exchange rate is required to compensate for a higher rate.
Look at the above, the higher the EFFR, the lower the DXY.
A lower exchange rate is required to compensate for a higher rate.