DXY: Momentum trade – OCBC

Source Fxstreet

The US Dollar (USD) dipped post-CPI (which came in largely in line with estimates) but the dip was short-lived. Bullish momentum eventually saw USD trading fresh highs for the year. DXY was last at 106.70 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is bullish

“Price action demonstrates how markets are still adjusting their expectations with regards to Fed cycle (as more Fedspeaks come), inflation in light of Red sweep outcome and Trump’s policies. More nomination is coming through and the narrative is that Trump may hit the ground running in Jan 2025, unlike in 2016 when he was less prepared. Tariff risk and Trump policy uncertainty may continue to keep Trump trade (i.e. long USD, short CNH) supported in the interim.”

“On Fedspeaks overnight, Logan calls that policymakers should more at a slow pace given uncertainties about how restrictive monetary policy is. Schmid also sounded a note of caution saying that it remains to be seen how much further interest rates will decline or where they might eventually settle. He also warned about higher government debt may weigh on growth and drive rates up and depth of eventual Fed cut remains undetermined. More Fedspeaks are lined up this week, including Powell (Fri).”

“Daily momentum is bullish while RSI rose. Near term risks skewed to the upside. Resistance here at 106.50 levels (2024 high) before 107, 107.40 (2023 high). Support at 105.60 (76.4% fibo), 104.50/60 levels (21DMA, 61.8% fibo retracement of 2023 high to 2024 low). For the day, PPI is due.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dan Ives Thinks a Trump White House Is a Big Win for This Artificial Intelligence (AI) CompanyFor the last couple of weeks, the capital markets featured some pretty outsize volatility as the outcome of the presidential race between Vice President Kamala Harris and former Pr
Author  The Motley Fool
12 hours ago
For the last couple of weeks, the capital markets featured some pretty outsize volatility as the outcome of the presidential race between Vice President Kamala Harris and former Pr
placeholder
Gold price drops to nearly two-month low, seems vulnerable near $2,560 areaGold price (XAU/USD) attracts sellers for the fifth successive day and drops to its lowest level since September 19, around the $2,559-2,558 region during the Asian session on Thursday.
Author  FXStreet
13 hours ago
Gold price (XAU/USD) attracts sellers for the fifth successive day and drops to its lowest level since September 19, around the $2,559-2,558 region during the Asian session on Thursday.
placeholder
Cisco reports upbeat annual guidance after Q4 results top estimatesInvesting.com -- Cisco reported Wednesday upbeat guidance following fiscal fourth-quarter results that topped Wall Street estimates.
Author  Investing.com
13 hours ago
Investing.com -- Cisco reported Wednesday upbeat guidance following fiscal fourth-quarter results that topped Wall Street estimates.
placeholder
SoundHound AI Stock Sinks 17% Despite Beating Earnings and Revenue Estimates and Raising 2024 and 2025 GuidanceShares of SoundHound AI (NASDAQ: SOUN) dropped 17.1% on Wednesday, following the artificial intelligence (AI)-powered voice solutions provider's release on the prior afternoon of its third-quarter 2024 report.
Author  The Motley Fool
13 hours ago
Shares of SoundHound AI (NASDAQ: SOUN) dropped 17.1% on Wednesday, following the artificial intelligence (AI)-powered voice solutions provider's release on the prior afternoon of its third-quarter 2024 report.
placeholder
It’s “Still Early” Until Bitcoin Hits $500,000 – Bitwise CIO Explains WhyAccording to Bitwise Chief Investment Officer (CIO) Matt Hougan, entering the Bitcoin (BTC) trade may not be too late. The executive recently said that until the flagship cryptocurrency hits $500,000, it’s “still early.”
Author  Bitcoinist
13 hours ago
According to Bitwise Chief Investment Officer (CIO) Matt Hougan, entering the Bitcoin (BTC) trade may not be too late. The executive recently said that until the flagship cryptocurrency hits $500,000, it’s “still early.”
Related Instrument
goTop
quote