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USD index bearishThis is just an update to a previous post that pointed to strong bearish divergence in the DXY, Target was 83 - raised to 85 but possibly lower, Competitive devaluation of the USD a side-effect of Fed over-reaction to a supply side disruption that lower interest rates simply cannot help. Rates now significantly negative in real terms, with a possibility of soon going negative in nominal terms as well. Demand for what is perceived to be riskier and riskier treasuries will be lower domestically and from overseas. At some point treasuries will become under subscribed and then we will be in a similar situation as inter-war German Weimar Republic. Take the reduction in relative purchasing power or buy gold and silver.
TVC:DXYShort
by flyinkiwi10
GBPUSD Jan 22, 2020This pair is about to drop down to strong support which has been tested 3 times (in my opinion) and therefore we have a strong support level. We can see on the 240-minute (4 hours) timeframe that we have rejection on the trendline and our RSI is over 50 which means that we are in an overbought position. Therefore I am willing to short this pair. Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Short
by Mete_forex
FX Markets: Dollar Rises, Pound FallsThe FX markets went on the move yesterday, with the dollar rising and the pound falling. The greenback managed to gain strength even as manufacturing data came in weak. Meanwhile, the royal currency dropped as more Brexit problems arose. This week, data showed the US manufacturing sector contracted in September. It fell to its weakest level in a decade. Business conditions looked lackluster on the back of the US-China trade war. On the other hand, analysts are believing that the dollar would fare better than other peers. That’s because of its relatively higher yield. The US economy so far also appears to be faring best. One analyst even pointed out that although US manufacturing was dismal, the eurozone’s is even more disappointing. The markets will be focusing on the non-farm payrolls data on Friday. Investors will be seeking clues as to the current real condition of the US economy. UK PMI, Brexit, and FX Markets Over in Europe, the currency markets aren’t looking good. The pound lost more than 50 percentage points after Ireland rejected UK Prime Minister Boris Johnson’s latest Brexit proposal. It dropped 0.48% against the dollar to 1.223. Against the euro, it lost 0.56% to 1.121. The UK’s manufacturing data also showed a contraction in the economy. Such weakening comes for the fifth month in a row, with uncertainty dominantly blurring prospects and output. The British prime minister’s plan was to set up a “buffer zone” on the Irish border. Irish foreign minister Simon Coveney called the proposals a “non-starter.” This dampened hopes for a smoother and less chaotic Brexit deal before the October 31 deadline. However, a silver lining appeared for the British pound. This was after Johnson gave a speech at the Tory conference saying that there would be no more Brexit delays.
by Financebroker