Are you worried about rate hikes by the Federal Reserve? There is something more alarming. Rising Libor rates is a bigger concern right now. Libor has been rising since Feb. 7 for 31 consecutive sessions, reaching 2.27% last March 21 (next release today at 19:30 ET). Not only, Libor tends to be a 3-month leading indicator to the dollar (I can't insert the Bloomberg chart). It would mean in the next three months a surge in the USD.
From the weekly chart of the Dollar Index, it could be a bullish signal. Indeed, the bearish trend has stopped on the 50% of Fibonacci Arc and, even though I haven't drawn it in the chart, the low (highlighted with the letter "L") has retraced the 61.8% of the previous bullish movement. The bullish signal there will be with the breakout of the rectangle resistance within which DXY it moved in the last weeks (above 90.80 approx.).
However, there is an important consideration. If there will be a tightening-up of the "trade war", we will see a weakening, a depreciation of the dollar. So, prudence.
Happy Easter to you all!!
From the weekly chart of the Dollar Index, it could be a bullish signal. Indeed, the bearish trend has stopped on the 50% of Fibonacci Arc and, even though I haven't drawn it in the chart, the low (highlighted with the letter "L") has retraced the 61.8% of the previous bullish movement. The bullish signal there will be with the breakout of the rectangle resistance within which DXY it moved in the last weeks (above 90.80 approx.).
However, there is an important consideration. If there will be a tightening-up of the "trade war", we will see a weakening, a depreciation of the dollar. So, prudence.
Happy Easter to you all!!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.