The DXY Index Continues To Fail After A Commentary By President Donald Trump

Published on: 07/23/18 10:05 AM

Category: Uncategorised

After United States President Donald Trump stated the United States economy may be suffering due to a strong currency and rate hikes, the United States remained in a weak position. There is currently a neutrality among the retail traders leaning heavily towards a bearish United States dollar. More information is required prior to the commencement of a directional signal. The fiscal authorities and central bankers have been meddling during the last 24-hours and this has been a contributing factor to the volatility of the United States dollar. The People’s Bank of China has decided the best way to deal with the tariffs from America is to rejoice in the Yuan’s depreciation. This has placed the majority of the focus on FX markets as a marker for the additional asset classes.

When both gold and United States stocks rallied yesterday along with a decrease in the United States dollar, this was interpreted as a strong signal. This occured after the statements were made by United States President Donald Trump. The conclusion is the President is transforming a trade war into a currency war using the decreasing Chinese Yuan as his current anchor. His commentary is continuing as his latest tweet stated there is manipulation present in the current interest rates and currencies of the European Union and China. He said the United States is losing a major competitive edge due to the continuing strength of the United States dollar and the consistent increases in rates.

The status of the United States dollar is expected to suffer due to fiscal interference regarding the United States monetary policy. United States President Trump chose to make his statements during an extremely crucial period for the United States dollar. According to the DXY Index Price Chart, the price increased close to the year’s highest levels prior to a substantial fail. The formation of the DXY Index during the last eight weeks is indicating the pace of the effort to reach the top is increasing. This has placed substantial pressure on the technical posture of the DXY Index in regards to the United States dollar. There is a chance the price may decline as shown by the recent activity. Both the Slow Stochastics and daily MACD are signaling the momentum is slipping and it may be time to sell. This effectively places a hold on the bullish triangle.