USD PRICE OUTLOOK – US DOLLAR BLUDGEONED AS SELLERS STRONGARM BULLS AHEAD OF MONTHLY MARKIT PMI REPORTSFX merchants push to dethr
USD PRICE OUTLOOK – US DOLLAR BLUDGEONED AS SELLERS STRONGARM BULLS AHEAD OF MONTHLY MARKIT PMI REPORTS
- FX merchants push to dethrone King Greenback by sending the DXY Index 3% decrease this month
- US Greenback has confronted heightened promoting stress as safe-haven demand evaporates
- Markit PMI experiences on faucet for launch this Friday may catalyze forex volatility
US Greenback bulls have been in a world of ache this month. Tracked by the DXY Index, the US Greenback has swooned almost 3% for the reason that finish of June. Along with vanishing demand for safe-haven currencies, US Greenback promoting stress has largely corresponded EUR/USD worth motion surging to contemporary 2020 highs.
DXY INDEX – US DOLLAR PRICE CHART: 4-HOUR TIME FRAME (28 JUN TO 23 JUL 2020)
Chart created by @RichDvorakFX with TradingView
The newest push decrease by USD bears has blown previous crucial technical help ranges, sending the broader US Greenback in adverse territory year-to-date, and leaving the ‘King Greenback’ title in jeopardy.
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Trying forward, the dominant themes of flourishing threat urge for food and strengthening spot EUR/USD may proceed steering the Buck decrease. If market volatility snaps again and threat aversion takes maintain, nonetheless, there could also be potential for the US Greenback to rebound from its sharp slide.
USD PRICE CHART – US DOLLAR IMPLIED VOLATILITY & TRADING RANGES (OVERNIGHT)
On that notice, the DailyFX Financial Calendar reveals that Markit PMI experiences are on faucet for launch this Friday, July 24. Markit PMI knowledge may spark a fabric response throughout asset lessons contemplating the intently watched main indicator stands to supply an replace on the v-shaped financial restoration.
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As such, worse-than-expected PMI readings might ship a notable blow to threat urge for food and significant increase to the US Greenback. Conversely, if upcoming Markit PMI experiences element an general strong well being test on the worldwide financial system, merchants might emphasize latest bearish USD worth motion.
Maintain Studying – US Greenback Implodes as VIX ‘Concern-Gauge’ Swoons, Gold & Oil Soar
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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