Downside for DXY and upside for EUR/USD says DailyFX strategist
January 11, 2019 5:30 pm
Wednesday was a very significant day for the US Dollar Index says Chris Vecchio, senior currency strategist at DailyFX, which saw the greenback push below 95.16, the pivot low from early November.
He says there looks to be downside for DXY while EUR/USD could get a boost in the near term. Vecchio says a weekly close between 95.16 will provide greater confidence in US dollar weakness ahead. Vecchio says the risks around the short dollar trade stem from a resolution to the US-China trade war and an end to the partial US government shutdown, both of which would likely push US bond yields back up and in turn lift the dollar.
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Through our low fees and smart price-sourcing technology, we help traders keep their costs down.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading spread bets and CFDs with this provider†. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit.
* Based on revenue excluding FX (published financial statements, February 2018).
Wednesday was a very significant day for the US Dollar Index says Chris Vecchio, senior currency strategist at DailyFX, which saw the greenback push below 95.16, the pivot low from early November.
He says there looks to be downside for DXY while EUR/USD could get a boost in the near term. Vecchio says a weekly close between 95.16 will provide greater confidence in US dollar weakness ahead. Vecchio says the risks around the short dollar trade stem from a resolution to the US-China trade war and an end to the partial US government shutdown, both of which would likely push US bond yields back up and in turn lift the dollar.
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We provide fast and flexible access to over 15,000 financial markets – including indices, shares, forex and commodities – through our award-winning range of platforms and apps.
Established in 1974 as the world’s first financial spread betting firm, we’re now the world’s No.1 provider of CFDs and spread betting* and a global leader in forex. We also offer an execution-only share dealing service in the UK, Ireland, Germany, Austria and the Netherlands. We have recently launched a range of affordable, fully managed investment portfolios, to provide a comprehensive offering to investors and active traders.
Through our low fees and smart price-sourcing technology, we help traders keep their costs down.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading spread bets and CFDs with this provider†. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit.
* Based on revenue excluding FX (published financial statements, February 2018).
† For the 12 months preceding 1 January 2019.
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