Inflation and Dollar Index – Market Movers
Consumer sentiment hit their lowest 10-year point, tons of workers leaving their jobs in September, inflation still growing, and indexes closed the week in red this Friday. November is here fully and still, lots to come till Thanksgiving! Let’s dive in. What moved the markets? US inflation alarm bells rang across the global markets last week. Consumer price index data issued by the US Bureau of Labor Statistics showed that prices rose at the fastest pace since the 90s, increasing to 6.2%. The US dollar jumped against a basket of major currencies last week as the dollar index rose to its highest level in more than 15 months to 95 points. The greenback rose on market expectations that the US Federal Reserve will raise interest rates sooner than previously expected. Last week, gold prices rose to their highest level in 5 months in the wake of US inflation data. The precious metal reached $1,868 an ounce levels before settling around $1,850. Dollar Index – trend continues We haven’t given you a chart analysis for quite a while, thus let’s try to see what the DXY is doing to get a better grip on what shall we focus on while trading the currency pairs. Let’s die into the daily chart for this week. Leaving were tight lows at 89.200 level initial consolidation before the upward trend has been left at 90.000 level in early summer months. We have attacked previous highs three times already, giving us enough momentum to push through massive key levels quite easily. What do we see right now? We see another key high attacked at 95.000 by the end of this week which is bring us to another consolidation and psychologically key level 96.000. Evaluate what this brings for currency pairs, but dollar is still giving us bullish signs for the remainder of this year! |
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