US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Forex today: why is the USD falling?
The dollar index is weakening today. There were several reasons for that. Let’s look.
- First of all, the new White House economic adviser Larry Kudlow announced that Mr. Trump will support a strong dollar, however, he also noticed that it will be a tougher policy in regard of China.
- Secondly, the US retail sales’ data was released yesterday. Although the figure was the same as in the previous month, it appeared lower than the forecast. As the retail sales were the last indicator before the Fed’s policy decision next week, a question on the more hawkish mood on future increases is still open.
- As the result of uncertainties about the Fed’s policy, Treasury yields fell.
- The yen is rising against the US dollar for the second day. The pair fell to 105.78 but could climb and now it is trading near 106. According to Fibonacci retracements, the support lies at 105.60.
- Despite a weaker data of the New Zealand GDP growth, the kiwi is rising. The falling US dollar is supporting this rise. The pair is trading around 0.7320.
- USD/CHF is standing still ahead of the announcement of the Swiss interest rate and the monetary policy assessment at 10:30 MT time. No changes in rate are anticipated, however, the Swiss National Bank can give some comments on the future monetary policy.
- Yesterday the euro declined to the support level at 1.2360 but could not break it that led to the slight strengthening of the euro. It is trading a few points above the support. However, no important data will be released today, so there is a chance that EUR/USD will break the support and fall further.
- Bitcoin is falling. The cryptocurrency plunged to $7,666. Now it is a little bit higher trading quite above $7,700. The support lies at $7,150, not so far for bitcoin price’s speed.
- There are no big movements of the other currency pair.
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.