Trade Tensions Continue to Weigh on US DollarPosted 06/06/2018 1:54PM CT |
The U.S. dollar has been continuing to experience some downward pressure today from ongoing trade tensions, falling to a two-week low despite recent strong economic data. The dollar has largely priced in the rate hike at the FOMC decision next Wednesday and will be looking ahead to the surrounding language of a fourth rate hike in December. Resistance in the near term is seen at 93.90 with the next target at 94.14 and support at 93.41 The Euro has found strength from recent hawkish statements from the ECB, breaking out of its recent consolidation zone of 1.1700. The Euro should continue to have some upside momentum ahead of the ECB meeting next Thursday, notwithstanding further political instability in Italy and Spain. Near term support is seen at 116.8575 and resistance at 117.9337.
U.S. Dollar Index Jun ’18 Daily Chart