The US Dollar heads back to flat after taking a step back earlier. The Greenback gave up its earlier gains against the Chinese Yuan and the Japanese Yen this Monday. The US Dollar Index trades near 105.00 and flirts with a break below.
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the improvement seen in risk mood make it difficult for the US Dollar to gather strength.
USD/JPY holds gains near 154.00 despite soft US Dollar. Weak US data builds pressure on the US Dollar. The speculation for Japan intervention to support the Japanese Yen remains firm.
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
WTI capitalizes on multiple tailwinds. The weak US job market fuels expectations for the Fed to reduce interest rates from September. Geopolitical risks deepen fears of tightening oil supply.
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US Dollar Index on Wikipedia
The US Dollar Index news can be seriously affected by the decisions taken by these organizations and people:
When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
