Talking Points:
- US Dollar strength has shown since this week’s US open, and the Dollar has retraced as much as 38.2% of the pullback that started a week-and-a-half ago. The big question is whether the Q2 bullish trend is ready for resumption, and a key data point for that theme is on the calendar for Thursday of this week, with the release of June CPI numbers out of the US.
- Showing with perhaps a greater degree of prominence has been a return of equity strength in US indices. The Dow Jones Industrial Average [1]broke-out to fresh three-week highs yesterday, and the S&P 500[2] appears set for a challenge of the four-month high that was set in March. Also of note from the risk-on side of the ledger is a return of Yen-weakness, as we looked at for one of our Q3 themes of interest.
- DailyFX Forecasts have been updated for Q3 and are available on a variety of currencies such as the US Dollar[3] or the Euro[4]: Click here for full access: DailyFX Trading Guides page[5]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[6]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[7].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[8].
US Dollar Bulls Return Ahead of CPI – But Do They Have Staying Power?
The US Dollar has finally found a bid after a pullback in
