DXY Insights: rank trade before the price increase?

FXStreet – The Dollar Index, which represents the strength of the USD vs. its 6 most important rivals, is from the 98,30-year low (Monday) to almost 1.5 %, to yesterday’s 3-week high of 99.75/80 increased to fall and then in front of the important US data in the center of the 99,00.

The recovery of the Greenback is associated came in this week with a strong recovery in the US yields. The 10-year yield tested the month, 2.42 %, and then it went back to the European trading on Friday under 2,38%.

The recent Fed speculation on a Fed rate hike in June have pushed Talk. Currently, the CME Group FedWatch Tool shows a probability of a rate increase in June by more than 83 %.

The Non-farm Payrolls fell for April, and the unemployment rate recorded a lower than expected result, which improved the sentiment towards the USD. On this Basis, prepare the markets to the case before, that the today’s US CPI and retail sales a positive Surprise provide.

The recent break of the critical 12-month support/resistance line and the 200-day SMA (more at the bottom of the 99,00) has improved the constructive perspective for the Greenback. Good data and Fed speculation to a tightening of Fed monetary policy, will be Talking in no time. The psychological mark of 100.00 or more, offering immediate resistance, and the April is High in the vicinity of the of 101.30. In between are several Fibo Retracement of the April to Mairückgangs should offer a small resistance.

** FXStreet News Editorial, FXStreet**

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