What is everyones current outlook on the USD?
I am predominantly a technical trader so I personally see the most probability in a move higher for the USD, below you can see the chart I am currently watching for the DXY.
The US Dollar Index (DXY) is a measure of the value of the United States Dollar relative to a basket of foreign currencies. It is a weighted measure using the dollar’s movements relative to other select currencies, the current mix is approximately:
- 57.6% Euro (EUR)
- 13.6% Japanese Yen (JPY)
- 9.1% Canadian Dollar (CAD)
- 4.2% Swedish Krona (SEK)
- 3.6% Swiss Franc (CHF)
As you can see the dollar has broken to the upside and we believe we could see a bullish run from here. If you open your charts and look at the EUR/USD, you will see it is very nicely correlated with the DXY and presents a similar setup. With the EU under huge pressure now due to the UK exiting, we think that there is a lot of room for a move down and the dollar currently has the potential to act as a safe haven currency, fuelling the moving up.