King Dollar Should Continue to Prevail

January 26, 2017 1:19PM CST

We’ve seen a multi-week correction in the USD Index after peaking at 103.815 on 1/3/17 and trading down to 99.76 in the early morning hours today.  Since this morning, we’ve seen a strong rejection of the low, trading as high as 100.73 in today’s session.  With the recent upward trend in growth and inflation (CPI hit a 32 month high) since the 4th quarter of 2016, we fully expect the USD remains locked in its bullish formation at least in the near-term.  Tomorrow, we’ll receive another US GDP reading (Expecting 2.2%) and US Durable Goods Orders (+2.6% Expected), and could provide further evidence of a strengthening economic picture here in the US.  This coupled with a “hawkish” tilt to the Federal Reserve, should further strengthen the case for a strong dollar in weeks to come.   The dollar should fight to overcome its recent downward slide as the data continues to paint a brighter picture, but must first overcome its down channel resistance level of 101.25.  Good Luck! 

 

Dollar Index Daily

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.