Oil and the dollar are doing something they have only done 11 times in the past 35 years
Oil prices and the U.S. dollar are rallying in tandem—a dynamic that has only occurred 11 times since 1983, and it’s drawing the attention of market participants attempting to assess its significance. West Texas Intermediate crude oil traded on the New York Mercantile Exchange CLM8, +0.14% which is up 12.2% in the past month, according to FactSet data, has shaken off a 3.6% rally in the previously battered dollar, as measured by the ICE U.S. READ MORE @ https://www.marketwatch.com/story/oil-and-the-dollar-are-doing-something-they-have-only-done-11-times-in-the-past-35-years-2018-05-09
WHAT IS THE USD INDEX CHART SAYING?
USD has formed a nice Ascending Triangle at the hourly chart and breakout at the daily chart. The question is all on tonight CPI data release. Be cautious as the market still stays at vulnerable territory to drag currencies to any direction.
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 5.00am – RBNZ maintain their rate at 1.75% and RBNZ statement remains dovish for the year. We stay neutral for now.
- 9.30am – China will release their CPI data that will move AUD, NZD and CAD. We are expecting a good data.
- 1.00pm – Japan economy watchers will give their sentiment – expected to be good.
- 4.00pm – ECB economic bulletin – EURO volatility is expected.
- 4.30pm – UK will release Manufacturing & Goods Trade Balance – expected to be neutral of weak – GBP remains SELL for now.
- 7.00pm – BOE inflation and rate vote – GBP seats on a critical support and todays news will decide the next move of GBP. No major changes is expected. We maintain SELL for GBP.
- 8.30pm – US will release their CPI data and is expected to be good – USD @ $94 is expected tonight. A volatile night in favor of the USD.
USD already priced in for the volatility but BULL remains in favor for the USD for now. Be cautious and always maintain good money management.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.