Market Overview

Tuesday's Market Minute: And The US Dollar Remains King Of The Hill…

Tuesday's Market Minute: And The US Dollar Remains King Of The Hill…

There’s going to be some attention this morning directed towards the U.S. Dollar with the new high for the year to start the week. The futures (/DX) and the index ($DXY) are now above 99 – levels we haven’t seen since the spring of 2017 – and the move up is in-line with the underlying trend up we’ve been seeing.

The recent breach of the 99 level is partially due to the rate differential – a situation that’s been playing out for months now – with U.S. rates at favorable levels relative to those in Europe or other areas around the world, central banks keeping rates at historical low levels favors the U.S. Dollar. Second, the bid is in reaction to weakness in foreign currencies. Last week, the Euro currency posted a new low for the year on weaker-than-expected ecodata and the British Pound also hit new lows for the year this weekend.

There’s no lack of catalysts for this dollar bid, and a big week ahead in terms of ecodata to come. Keep an eye on the dollar bid, the ripple effect it creates, ISM Manufacturing data due out today, Fed speakers, and jobs data to close the week out Friday.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Image Sourced from Pixabay

Posted-In: TDAmeritrade usdNews Futures Markets General Best of Benzinga


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