InvestMate|DXY Dollar in retreat
Updated
💲DXY Dollar in retreat.
💲Last week the event everyone was waiting for was the interest rate decision, which rose to 4%.
💲This was followed by a press conference in which Jerome Powell spooked the markets with a hawkish tone, which first triggered a sharp wave of dollar weakness, and Powell's words were followed by a speculative attack to strengthen the dollar.
💲The next day already brought a cooling off and the market returned to discounting the scenario of a weakening dollar in the future and a slowdown in interest rate hikes.
💲4 November Non Farm Payrolls performed very well with 261k new jobs created compared to the 200k the market was expecting.
💲After which the rate from the data we found out unemployment rose to 3.7%
💲All this data could have a positive impact on future inflation readings. Which has been falling for over 4 months.
💲Looking at the dollar index we were still last at levels seen in 2002.
💲Looking at the big picture, the bottom on the dollar took place during the 2008 crisis and since then the dollar has gradually strengthened.
💲But the real wave of appreciation has only come since inflation rose and the Fed began raising interest rates.
💲Looking ahead and combining the facts, it does not look like the FED will be raising interest rates as sharply in the future as it has done in recent months.
💲Turning to the chart. On 3 November we saw an attempt to attack the 0.618 level of the last downward wave from where the sell-off rally started.
💲Measuring the upward momentum that has been going on since the discounting of interest rate hikes in America
💲The key places will be 2 levels.
The first 0.236 and the second 0.382
💲In the long term we are likely to be at the 102 level which has been set by measuring from the last peak in 2001 to the 2008 low. Where price has repeatedly found resistance
💲If we would maintain the downward trend the levels to see this week are 108.5 and 107.300 which are the outer fibo levels of the last upward impuls
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
💲Last week the event everyone was waiting for was the interest rate decision, which rose to 4%.
💲This was followed by a press conference in which Jerome Powell spooked the markets with a hawkish tone, which first triggered a sharp wave of dollar weakness, and Powell's words were followed by a speculative attack to strengthen the dollar.
💲The next day already brought a cooling off and the market returned to discounting the scenario of a weakening dollar in the future and a slowdown in interest rate hikes.
💲4 November Non Farm Payrolls performed very well with 261k new jobs created compared to the 200k the market was expecting.
💲After which the rate from the data we found out unemployment rose to 3.7%
💲All this data could have a positive impact on future inflation readings. Which has been falling for over 4 months.
💲Looking at the dollar index we were still last at levels seen in 2002.
💲Looking at the big picture, the bottom on the dollar took place during the 2008 crisis and since then the dollar has gradually strengthened.
💲But the real wave of appreciation has only come since inflation rose and the Fed began raising interest rates.
💲Looking ahead and combining the facts, it does not look like the FED will be raising interest rates as sharply in the future as it has done in recent months.
💲Turning to the chart. On 3 November we saw an attempt to attack the 0.618 level of the last downward wave from where the sell-off rally started.
💲Measuring the upward momentum that has been going on since the discounting of interest rate hikes in America
💲The key places will be 2 levels.
The first 0.236 and the second 0.382
💲In the long term we are likely to be at the 102 level which has been set by measuring from the last peak in 2001 to the 2008 low. Where price has repeatedly found resistance
💲If we would maintain the downward trend the levels to see this week are 108.5 and 107.300 which are the outer fibo levels of the last upward impuls
🚀If you appreciate my work and effort put into this post I encourage you to leave a like and give a follow on my profile.🚀
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