US dollar: outlook for July 3-7

US dollar: outlook for July 3-7

The US dollar fell to a 9-month low versus a basket of currencies. Market participants still don’t believe that the Federal Reserve will raise interest rates more times this year. At the same time, traders interpreted communication from other central banks – primarily the European Central Bank and the Bank of Canada – in a hawkish way.

The upcoming days will contain a lot of important events for the greenback. ISM manufacturing PMI on Monday will provide an update on the current state of US economic activity. The FOMC meeting minutes on Wednesday will give insights into the thinking of the Fed. It’s worth remembering that the central bank’s June statement was rather hawkish, so this release may offer the US currency a chance for some upward correction. Thursday will bring ISM services PMI, oil inventories and ADP employment report, while on Friday there are plenty of reasons to expect a spike in volatility as nonfarm payrolls (NFP) will be out. In addition, the Fed will release monetary policy report, which is published twice a year. The document will contain a summary of discussions of the conduct of monetary policy and economic developments and prospects for the future. 

The US dollar index (DXY) fell to 95.22, the lowest level since September 2016. The asset breached support at 96.40 (bottom of the sideways range and 61.8% Fibonacci retracement of 2016-2017 advance). This area will now play the role of significant resistance. Bears have already reached the target of the broken sideways range (rectangle), but there’s still space until the next Fibo level on the downside lies at 94.40. Good data out of the US and hawkish comments of the Fed members are needed to save the USD from further declines.

USD index daily.png



What awaits the USD?

In this article, we have gathered the main things you need to know about the US central bank and the USD. 

CAD: BOC meeting and oil prices

To trade the Canadian dollar these days, you will need to have the info about the key fundamentals which are driving it: the upcoming Bank of Canada’s meeting (BOC) and the outlook for oil prices…


Latest news

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera