Day Trading Forex | DayTradeFEED.com
For those of you day trading forex, the following is an example of how the dollar trades against the euro:
Those of us day trading forex saw the dollar take a loss for the fourth day in a row on Monday. This could be due to uneasy feelings shared by investors regarding a recent uptick by the currency.
On top of this, last Wednesday saw the dollar index at its highest peak in 4.5 months against a conglomerate made up of six major international currencies. An increase in U.S. Treasury yields, which directed attention at the large gap in interest rates between the United States and other countries, could be to blame.
The recent uptick was halted by poor April price data from U.S. consumers published last week. This data contributed to rising fears surrounding the Federal Reserve and if it would implement raised rates. These rate raise measures could be implemented up to four times this year.
Data showed a 92.402 index score Monday, which means a 0.3 percent drop from the previous week’s 2018 high.
“Barring a significant, and unlikely, pickup in productivity, a persistent USD rally is unlikely as the twin deficits crowd out private investment by raising borrowing costs,” said Hans Redeker, global head of currency strategy at Morgan Stanley in London.
Day Trading Forex 101: While the dollar drops, the euro rises.
With feelings around the dollar currently in flux, the euro has seen a .4 percent gain to $1.1986. This comes after dipping to $1.1823 last week, which marked its lowest since Dec. 22.
In addition, Italian political news regarding the 5-Star Movement and the far-right League hit the public. Apparently, these two organizations may merge to form a new government for the country.
“Italian politics aren’t a major moving factor in the euro zone yet. It’s not an existential threat and isn’t driving a lot of positioning,” said Manuel Oliveri, an FX strategist at Credit Agricole in London. “I expect inflation to rebound in the euro zone and that will keep the European Central Bank’s stimulus unwinding on track,” he said.
For more information regarding this article and today’s EUR/USD movements, visit Reuters.com.