European Majors Defensively on the Decline
Fed Chair J Powell's testimony which covers, jobs, wage growth, inflation well within target and interest rate increases would be as expected for the year. These statements in general have had a favorable price reaction with the USD, contrary to the wider budget deficit being brought into the discussion.
The #DXY move above 90.05/10 on the way up would provide a glimpse of how the end of the trading month of February in a more positive tone. Especially with a triple digit price recovery for the equities markets.
Fed Chair J Powell's testimony which covers, jobs, wage growth, inflation well within target and interest rate increases would be as expected for the year. These statements in general have had a favorable price reaction with the USD, contrary to the wider budget deficit being brought into the discussion.
The #DXY move above 90.05/10 on the way up would provide a glimpse of how the end of the trading month of February in a more positive tone. Especially with a triple digit price recovery for the equities markets.
With that said, the repercussion on the #EURO have driven the single currency to decline easily, currently at 1.2235 aiming the initial objective at 1.2180 in the near term. While the decline would eventually spill over with the EURGBP Cross. Meanwhile #CABLE / #GBPUSD has followed price action towards the 1.3880 which could meet some tentative support at the 1.3750. That is when volumes for the USD builds the likelihood of the European majors would initially feel the impact of a USD turn around at this point.
Reference to Strategies:
USD Probable Turn In the Making Posted As of Feb 21, 2018
DX Futures Roll over up nearly 2.00 basis point from 1st trade position Feb 02, and a 2nd retest was made Feb 16 on the DXY before today's up move Feb 28, 2018.
DX Futures Roll over up nearly 2.00 basis point from 1st trade position Feb 02, and a 2nd retest was made Feb 16 on the DXY before today's up move Feb 28, 2018.
Fed statements from dovish to hawkish tone turned negative for US equities. Meanwhile, the DXY snap a dip in the mid session but recovered back above the 90.20 as a reference point.
ReplyDeleteMarket Call On #USD #EURO #GBP VALIDATED
ReplyDeleteReference to Strategies: USD Probable Turn In the Making As of Feb 21, 2018
Link: https://megatrade101.blogspot.com/2018/02/strategies-usd-probable-turn-in-making.html
As of March 1, 2018 - CCY Price Update: #DXY @90.76 #EURO @1.2175/80 #GBP @1.3762 #EURGBP Cross @0.8843. Market and Price Call have now been VALIDATED based on real time & actual prices traded on the spot market.
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Market disruption from President Trump's declaration of Steel and Aluminum Tariff which could turn into a TRADE WAR and add to INFLATIONARY pressure have driven the USD back down.
ReplyDeleteAnd this was breaking news during J Powell's testimony when equities where actually recovering higher and the DXY was above 90.50 level that resulted again into a market sell off.
As we made mention that the markets are surrounded by uncertainty, fear of another massive decline. Although, triple digit #s when added altogether is quite substantial. And this trade war has been added to the equation for a bear market.