Although most analysts expect the Greenback to strengthen in 2017, extending the gains seen since the November election and since the Fed raised interest rates last December; the new year has seen Dollar weakness against the Aussie, Canadian Loonie, Euro, Swissy and Yen.
Nerves = Weaker Dollar
Mr. Trump’s news conference in New York on Wednesday morning along with speeches from Fed officials, including Ms. Yellen on Thursday January 12th has given jitters to the Dollar bull traders. Investors will be looking for clues on the pace of further monetary policy changes and insight of course into Trump’s policies.
We are now seeing the Dollar rally undergoing a correction, but that doesn’t mean that the Dollar rally is over and the Forex Signal Trading Desk will be monitoring the market closely to observe the immediate and sustained reaction of the Greenback to this week’s speeches.
The Exception: The British Pound
The GBP has fallen steadily against the USD since January 5th and hit a 10-week low against the USD as Theresa May comments over the weekend fueled of a hard Brexit.
Insight From The USD Index
The USD Index has overall weakened over the past 10 days, but not without a fight as this chart shows with the blue candlesticks on January 3rd, 6th, and today. The blue candlesticks mean that the price closed higher for the time period reflecting in the chart, which in this case is a daily candlestick. Learn more about candlestick charts.
Insight From The ForexSignal Trend Meters
The ForexSignal Trading Desk measure the Forex trend daily using various tools and simple indicators, as taught in our Strategy 101 trading course. View our Trend Meters for January 10, 2017.
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