Forex today: why is the USD falling?

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.

kudlow.jpeg

  • 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.

retail sales.png

  • 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.

USDJPYDaily.png

  • 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.

EURUSDDaily.png

  • 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.

Similar

USD Holds the Line
USD Holds the Line

The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now. 

US Dollar Prepares for the Pump
US Dollar Prepares for the Pump

On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies. 

Uptrend in Gold Starts Now
Uptrend in Gold Starts Now

Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!

Latest news

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

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