U.S. Dollar Marches Ahead to New HighPosted 05/07/2018 11:41AM CT |
The U.S. dollar continues to move to year to date highs, up 0.1640 or .18% on the day, coming off the February low of 87.83. Growth and momentum appear to have shifted to the U.S. following reports of soft economic data in the Eurozone. The U.S. economy added less jobs than expected on Friday while average hourly earnings (YoY) came in at 2.6%, lower than the expected 2.7%, while the unemployment rate fell to 3.9%, the lowest level since 2000. German industrial orders posted a decline in the overnight which along with some downward pressure with the rise in crude prices, helped forge a new four-month low in the Euro at 1.1930. The Bank of England appears to have adopted a more dovish sentiment, suggesting an interest rate hike is not expected with the monetary policy decision on Thursday. Momentum is trending higher but coming in near overbought levels with support at 91.17 in the near term and resistance at 92.72. Look to buy in on the U.S. dollar on dips and corrective moves while continuing to monitor upcoming U.S. inflationary reports, mainly the API and CPI released later this week, as well as the looming deadline of May 12th on whether or not to pull out of the Iran nuclear agreement.
U.S. Dollar Jun ’18 Daily Chart