Dollar Needs to See Positive Data to Hold Its GroundPosted 06/21/2018 9:42AM CT |
The US dollar has regained upside momentum and has climbed to a new 2018 high coming into this morning’s action in spite of an overnight flare-up of trade tensions. Fed Chairman Powell’s comments that there is a strong case for additional Fed rate hikes may not be a total surprise to the market, but the comments are being emphasized by several other major central banks holding in an accommodative stance. This morning’s rally may have been fueled by events in the eurozone but will need decent results from this morning’s US data for the USD to climb further. Resistance comes in at 9493 in the September contract, with support at 9454.
The euro is back on the defensive and has reached a new low for the move this morning. The proposed appointment of a “Eurosceptic” to a key government post has caused a sharp rise in Italian yields early today that clearly rattled sentiment throughout the eurozone. ECB President Draghi expressed confidence that eurozone inflation will rise back towards their 2% objective, there have been few highlights from recent eurozone data points. Resistance is at 11689 with support at 11626.
US Dollar Sep ’18 Daily Chart
Euro Sep ’18 Daily Chart