Yesterday, the US Dollar lost a bit of its value against a basket of 6 other major currencies. This happened after the US retail sales report, which came out pore than expected, thereby disappointing experts and market participants. The thing is that the retail sales volume remained unchanged in July as compared ot the previous reporting period.
At the same time, the data urged them to change their mind regarding the Fed's interest rate decision. The thing is that the market used to anticipate earlier-than-expected interest rate hikes.
Still, at the second part of yesterday's trading session, the US Dollar managed to regain some of the lost ground. Today, the market keeps on going recovering. At this point, the price has rallied 0,04%.
Meanwhile, major US stock indices closed yesterday's trading session in the green zone.
Still, the weak retail sales figures triggered a rally in the US bond market. In particular, the 10-year US bond market saw a price increase, which was coupled with lower yield. In particular, the US bond yield dropped down to 2,429%. Apparently, the decreased yield is pressing he US Dollar.
Still, analysts assume that even despite the fact that most traders and investors changed their mind regarding the Fed's intention to start raising interest rates earlier than expected, lower retail sales are not the key factor indicating that the economic situation in the country is deteriorating. Meanwhile, the indexes indicating consumer and business confidence are still high. At the same time, analysts assume that the US economy is going to accelerate during the second part of the year, thereby supporting the American currency.
Investors assume that th Fed will start raising the rates in mid 2015.
Masterforex-V Academy: US Dollar Prospects
According to the trading experts of Masterforex-V Academy, the H1 chart of the USD index indicates mid-term prospects. The chart hints that the bearish reaction is still underway below the MF sloping channel. If the tendency continues, we are likely to see the price going down to 81,29-81,26 and even 81,19.
Alternatively, a break above the 81,49 resistance level, especially if coupled with a break above the Mf sloping channel, will give way to 81,60 and 81,72.
