May 22nd - There’s little on the economic calendar as the new trading week gets underway but the dollar does seem to have initiated something of a rally back from recent lows of late, with many seeing this as being directly linked to the retreat in commodity prices – gold is now trading below $650/oz, $50 off Friday’s highs and almost $100 lower than the record highs of mid-May. Assuming this correction continues then in the absence of any additional fundamental data, the greenback should be able to at least hold onto some of its recent gains, although in the longer term the fact that US interest rates are expected to start levelling off in due course needs to be taken into account. With no significant economic announcements due before Wednesday a rather choppy spell of trading may now follow, but US data later in the week including durable goods orders and new home sales will be closely watched. Any signs of inflationary pressures may again add to calls at the Fed to keep the hawkish stance over rates going for that little bit longer, in turn extending the dollar’s positive run, but at the same time a significant rebound in commodity prices could signal an end to this bullish trend…
Disclaimer: Although obtained from sources believed by us to be reliable, CMC Markets and its affiliates cannot guarantee the accuracy or completeness of the information upon which this commentary is based. This commentary does not purport to disclose the risks or benefits or entering into particular transactions and should not be construed as advice in any specific instance. The views in this report constitute our judgement as of this date and are subject to change without notice.
Fx-charts.com Disclaimer: The information contained on this website is subject to change without notice, views and opinions expressed on fx-charts.com may be those of individual authors and may not necessarily be the views of fx-charts.com or its officers and employees, we make no claim to the accuracy or timeliness of any information contained herein. We recommend obtaining advice from a suitably qualified financial advisor before entering into any financial transactions or agreements. The use of this website constitutes acceptance of our privacy policy, disclaimer and terms of use. This website is available for information and educational purposes only.
Need a forex broker? click on any of the buttons for more info!
