The GBP is going to be volatile today, while USD/TRY may be looking for a retest of its highs. Read more!
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.
Australia will publish the level of employment change and the unemployment rate at 3:30 MT on October 17.
The escalation of the US-China trade dispute and the Brexit uncertainties keep affecting the market. Read more!
The reports that the UK and the EU are close to complete a draft Brexit deal have pushed the British pound higher.