Are The US Dollar Bulls Back?

Friday’s Non-Farm Payroll data disappointed with 160,000 jobs created in April, 48,000 less jobs than the expected 202,000. On the other hand, the unemployment rate remained steady at 5%. Although the most recent FOMC release on April 27th revealed a dovish stance to raising interest rates, and recent non-farm payrolls data doesn’t give any extra incentives to a rate hike, rumors are still circulating that the Fed may still raise interest rates again this year.

Dollar Bulls Out To Play

The reason for such optimism is that despite recent data, the Greenback has been climbing against its major counterparts for a fifth day, the longest streak of gains since March. Why would a slowing US economy boost the value of the Dollar? The answer is simple. The other currencies are showing even greater sign of weakness.
Counties with currencies held up by commodity exporters are seeing weakness in commodities such as as oil, which continues to trade lower than its April 29th high.

Last Tuesday, the Reserve Bank of Australia made a surprising rate cut and forecast a dovish outlook for the months ahead with a bearish result on the Aussie.
The dollar has also extended its bullish behavior versus the Yen, although initially last week we saw renewed Yen strength after the BoJ left their financial policy unchanged at their recent meeting in April.

Month Of May = Dollar Bulls?

Historically, May is one of the best months to go long the Greenback. In fact, in the past 10 years, the US Dollar has rallied during the month of May 9 out of 10 times!
At ForexSignal.com we are looking for Forex trading opportunities, whether to long the US Dollar or to sell should the trend change, depending on the continued behavior of the Forex market. We are eagerly watching the Forex market  and look forward to sending Forex signals to subscribers all over the world as trade setups are confirmed.

Trend Meters

Our Trend Meters are updated daily and available with all ForexSignal.com memberships. See below for the Trend Meters shown for May 9, 2016. Members can login to our ForexSignal.com members only platform to view current Trend Meters at any time.