The US Dollar has been having a really rough month with the greenback moving downward consistently. The slow down in the US economy has caused the weakness in the US dollar to flare up. This gave other currencies such as the NZD and the EUR make some gains. More than that, Gold also made a good gain due to the USD weakness.
Not-So-Good USD Interest Rates
First off, the interest rates’ long term movement is affected by the overall US treasury yield’s weakness. This will most likely result in the FED implementing a yield control. Up until now, it is expected for the FED to still be on the dovish side.
Currently, the DXY is in a critical support level at 95.82. If it breaks out its support and continues its bear run, then we can expect to find some long opportunities on other sensitive currencies such as the AUD and the NZD. We may even see Gold making its way higher if the DXY falls.
Information on this page are solely for educational purposes only and is not in any way a recommendation to buy or sell certain assets. You should do your own thorough research before investing in any type of asset. Learn to Trade does not fully guarantee that this information is free from errors or misstatements. It also does not guarantee that the information is completely timely. Investing in the Foreign Exchange Market involves a great deal of risk which may result in the loss of a portion or your full investment. All risks, losses and costs associated with investing, including total loss of principal and emotional distress, are your responsibility.
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