USD Index Stays Above 100 as Trump Likes Strong Dollar Now

U.S. Dollar Bulls should be very happy...

USA (1)

One day after U.S. Federal Reserve Chairman Jerome Powell rejected the idea of implementing negative interest rates, President Donald Trump expressed his support for a strong dollar.

On Thursday, in an interview with Fox Business Network's "Mornings with Maria" program, Trump said: "It's a great time to have a strong dollar, (...) Everybody wants to be in the dollar because we kept it strong. I kept it strong, (...) Right now it's good to have a strong dollar. Right now having a strong dollar is a great thing."

This is in sharp contrast to his repeated complaints against a strong dollar not long before.

While the eurozone and Japan are currently implementing negative interest rates, the U.S. is likely to keep rates positive (though close to zero) in the foreseeable future. And now Trump does not mind a strong dollar. These will keep the greenback on a Bullish Bias.

U.S. Dollar Bulls should be very happy.

As shown on a Daily Chart, the ICE U.S. Dollar Index stays comfortably at levels above the psychologically-significant level of 100.00.


Source: GAIN Capital, TradingView


In fact, it is trading at levels above both 20-day and 50-day moving averages.

In case a third attempt to break above the Overhead Resistance at 101.00 (previous two attempts were made in April) results in a success, the next Resistance at 103.00 (year-to-date high seen in March) would come into sight.

Only a return to the Key Support at 98.55 would bring about a Bearish Reversal.


More from Dollar

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.