- The US Dollar rally continues as the Greenback has now gained 5.5% from the February lows. What started as a short-squeeze/bear flag scenario has continued to run, and DXY[1] is now approaching some longer-term levels of potential resistance. This has come along with a move in EUR/USD[2] that has propelled the pair to fresh lows, and GBP/USD[3] is in the process of grinding at the prior 2018 swing-low, set around the key level of 1.3500.
- The remainder of today’s calendar is rather light, as is the early portion of tomorrow’s. Tomorrow afternoon/early Thursday morning in New Zealand brings an RBNZ rate decision, and Thursday brings the Bank of England ‘Super Thursday’ along with US CPI for the month of April. Each of these drivers could take on relevance this week, and below we look at setups surrounding all three.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
US Dollar to Fresh 2018 Highs, Again
The US Dollar has continued to rally[8] and as we open Tuesday trade out of the US, the currency remains at fresh 2018 highs. We had some commentary from Fed Chair Jerome Powell earlier this morning taken from a speech
