
Dollar Faces Weekly Drop Again
The dollar looks set to post a second-straight weekly decline Friday, shrugging off a wave positive data earlier this week, and will continue to do so as most of the good news has already been priced in, Commerzbank (DE:CBKG) said.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.01% to 91.55.
Dollar heads for third weekly gain
Data earlier this week including retail sales and initial jobless claims surprised to the upside, but that drew little support to the dollar. The humdrum reaction suggests “the positive effect of Biden’s economic stimulus package and good vaccination progress in the US is largely priced in,” Commerzbank said. “Strong U.S. data can no longer support the U.S. dollar.”
With most of the strong data and positive vaccine news now priced in, the greenback will struggle to make gains in the short-term.
Forex Signals – Euro to US Dollar
The immediate horizon, meanwhile, doesn’t offer up much reason for optimism for dollar bulls. A helping hand from the the Federal Reserve is still aways off as Chairman Jerome Powell said the central bank was “highly unlikely” to raise rates before 2022.
Euro set for biggest monthly drop
“We’ve said we expect to keep rates where they are until meet three-part test,” Powell said Wednesday at a virtual event organized by the Economic Club of Washington. The three part test includes maximum employment, inflation reaching 2%, and on track to run moderately above 2% for some time.
The Week Ahead
Biden’s new infrastructure plan, aimed at long-term economic momentum, however, could provide the ammo needed for the dollar to rediscover its form, but progress on the legislative measure is unlikely until the summer.
“The infrastructure plan is contentious, and if it were to pass Congress, would only become more concrete in the summer, […] for now, the plans are too abstract to support the dollar on a sustainable basis,” Commerzbank added.
Forex Signals – Dollar Up Over Positive U.S. Economic Data
Dollar Faces Weekly Drop Again
Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals Learning Guides below with guide you with every trade you make! FxPremiere Group has helped over 5,000 Forex Affiliates earn up to $800 CPA on referrals and has grown immense revenue streams for online affiliates. Trading Forex has never been easy. The World of Forex Trading is growing day by day and its crucial to keep up to date with trends and market analysis. Here at FxPremiere Group we keep you updated with the Compare Forex Brokers charting system, as well as sending you Direct Forex Signals by our Telegram Services globally daily.
FX Signals
The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.
Dollar Faces Weekly Drop Again
About The Author: Forex Signals
Telegram Forex Signals FX including Opening Forex Accounts. Subscribe now for major pairs Forex Trading Signals Today by FxPremiere Telegram Forex Signals FX
More posts by Forex Signals