US DOLLAR PRICE OUTLOOK: US DOLLAR EXTENDS SLIDE ON BETTER-THAN-EXPECTED MARKIT MANUFACTURING PMI REPORTUS Greenback on tempo for
US DOLLAR PRICE OUTLOOK: US DOLLAR EXTENDS SLIDE ON BETTER-THAN-EXPECTED MARKIT MANUFACTURING PMI REPORT
- US Greenback on tempo for a 1.25% decline on steadiness during the last two buying and selling classes
- DXY Index plunges under the 97.00 value degree as anticipated market volatility ebbs
- Markit PMI information seemingly contributing to the newest risk-on tilt amid commerce speak whiplash
The US Greenback has prolonged markedly decrease to date on Tuesday in a continuation of declines notched the prior session. The DXY Index, a basket of main forex pairs reflecting broad US Greenback efficiency, now trades about 1.25% under final Friday’s closing value. Latest USD value motion seems to observe one other pullback within the VIX ‘fear-gauge’ amid relentless investor threat urge for food.
Really useful by Wealthy Dvorak
Foreign exchange for Novices
DXY INDEX – US DOLLAR PRICE CHART: 2-HOUR TIME FRAME (05 JUN TO 23 JUN 2020)
Chart created by @RichDvorakFX with TradingView
The DXY Index is now perched barely above the 61.8% Fibonacci retracement degree of its month-to-date buying and selling vary. If this space of confluence fails to offer technical assist to the broader US Greenback, the DXY Index may proceed to edge decrease towards the 96.00-price degree.
Really useful by Wealthy Dvorak
Traits of Profitable Merchants
Although there’s potential for USD value motion to ricochet again increased, the DXY Index might battle to beat its short-term bearish trendline shaped by a collection of decrease highs and decrease lows to date this week. That is contemplating main financial information releases, like IHS Markit PMI reviews, have underscored the V-shaped financial restoration narrative.
IHS MARKIT US COMPOSITE PMI CHART – JUNE 2020
Supply: IHS Markit Economics
June 2020 Flash Composite PMI information supplied by IHS Markit simply crossed the wires at 46.8, which is a fabric enchancment from the prior studying of 37.Zero for Might. Each the manufacturing and providers sector elements have been reported above consensus estimates, however US financial exercise continues to contract contemplating the headline determine remains to be under 50.0.
Really useful by Wealthy Dvorak
Introduction to Foreign exchange Information Buying and selling
However, the better-than-expected Markit PMI information appears to have supplied market contributors with another excuse to be optimistic and gas urge for food for threat. As such, the broader DXY Index might proceed to face headwinds contemplating lack of demand for fashionable safe-haven currencies just like the US Greenback.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception