Trade Strategy & Insight: DXY EUR GBP & CROSSES

Easing market tensions where seen in the markets across the board. The relative data from both sides of the continent have seen quite a comfort move for stocks and particularly for the US Dollar. This is what we would normally call a 'relief' as it moves slightly higher with the USD Index (DXY) recovering @79.56 basis point after coming from a recent 79.27 low.

The mix reports have only provided a short-live USD recovery supported by the February housing & inflation data as of this writing. And the recent comments made by Russia's Vladimir Putin added to investors taking some breathing room with the Dow Jones Industrial AVerage (DJIA), Nasdaq and the S&P moving back higher after the three digit decline from the past week.

From the lower band of the trade-weighted average of the US Dollar, we have expected that this recovery would occur simply based from our benchmark price parameters. And that the 78.80 basis point would be the key levels to watch for. which was just shy of 0.47bp from the recent low @78.27. Clearly doing our due diligence of taking on the DX futures contracts on the way higher once it provides a better signal before the closing 1st quarter at the end of this March.

Trade Strategy & Insight