Today, on May 15th, the USD index (it indicates the value of the US Dollar against a basket of 6 other major currencies) gained 0,14% at the beginning of the European trading session. The US Dollar index is gradually gaining value against other currencies thanks to the fact that the common European currency is currently showing signs of weakness. The Euro is the most influential currency within the scope of the basket, Market Leader reports.
The USD index is currently above 80.00. Today's gains are equal to 0,1% after the Euro lost a bit of tis value. Market participants seem to get ready for the ECB's further monetary easing in June, which is backed by Bundesbank. The common currency has just set a new monthly low at 1,3688.
Today's list of economic news includes consumer inflation (+0,3% expected), the Fed’s manufacturing index, initial jobless claims, TIC data, US industrial production, NAHB housing index. The final key event is Janet Yellen’s speech.
The US Dollar may feel some pressure because of the 10-year bond yield, which dropped down to the lowest point since October 2013.
Most likely, market participants will prefer to stay passive during the American trading session and wait for Yellen’s speech to see the overall picture more clearly.
USD Index
According to Masterforex-V Academy, the US Dollar is still trading within the scope of a long-term downtrend despite the rally started on May 8th. This is confirmed by the Daily chart.
In mid-term perspective, the US Dollar keeps gaining value against other currencies, which can be seen in the H4 chart. The price broke and consolidated above the local high. The following growth of the index may reverse the long-term trend.
In particular, a further rally is highly probable if the price manages to consolidate above 80,22 and 80,42. If this scenario manifests itself, it will give way to 80,60 and further highs. The scenario is marked green.
However, once USD resumes the long-term downtrend, we are likely to see a break below 80,00 followed by a move down to 79,77 and 79,53. The scenario is marked red.
