Talking Points:
- As we near Day Two of Jerome Powell’s semi-annual Humphrey Hawkins testimony in front of Congress, the US Dollar is pulling back from fresh July highs after a rather pronounced bullish bounce showed from a key support area yesterday. This highlights the one-year highs in DXY[1] at 95.53, as this level has previously twice turned-around bullish advances in USD[2].
- Helping with that Dollar-strength[3] is another wave of weakness in the British Pound[4] as GBP/USD[5] has set a fresh 10-month low. The pair is fast approaching the key psychological level of 1.3000, and after this morning’s disappointing inflation data for the month of June, sellers remain in control. A rate hike in August out of the BoE doesn’t look as certain, and considering the risk-averse posture of the BoE combined with the very fluid nature of Brexit dynamics, we may have to wait until November for a rate rise out of the Bank of England, if we get one at all.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[6] or the Euro[7] are available from the DailyFX Trading Guides page[8]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[9]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[10].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[11].
