Why is dollar strengthening against foreign currencies
why is dollar strengthening against foreign currencies ,what was its strategy or been his instinct to take the lead
Forex: Dollar presents great strength against the major currencies waiting for the FED
The dollar starts the week boasting of strength in the currency market, and by cutting ground against most of its major crossings of the Forex market at the beginning of the week preceding the meeting of the Federal Reserve (FED).
Dollar pressures the euro during the European session, and the EUR-USD pair back about a 0.40% to visit levels of 1.0940 dollars per euro on the Forex market.
Of the same way, the dollar American press to the low to the pound sterling in the market of currency, and the GBP-USD falls a 0.29% to them 1,2157 dollars by pound in them last exchanges of the market Forex.
Investors are on the lookout for the next meeting that will keep the Federal Reserve (FED) next week, in which expected interest rates remain unchanged.
However, the different statements that van emerging from them members of the FED, come pointing to an increase of the risk to keep them types of interest unchanged, since could assume that the inflation experience an increase greater of the desired.
John Williams, President of the San Francisco FED, said last week: “history teaches us that when an economy is overheated for too long, they may result in imbalances, causing an excess of inflation, a bubble in the asset market and ultimately a correction and even a recession of the economy”.
The US dollar could experience strong demand if the FED opts to apply a rise in the interest rates in its next meeting, since the greenback would be strengthened against other currencies on the Forex market. We must not forget that although this is not the highest probability, the FED also could surprise markets by applying a rise in the interest rates in the United States.
In fact, the main leaders of the FED’s Boston, Erin Rosengren, warned a few days ago that he might be forced to raise rates of interest at a rate faster than expected.
The dollar remains on the upside also against the Japanese currency, and USD-JPY moves up to the level of 105,03 yen per dollar in the market Forex.
Oil prices started the week down, keeping the bearish tone during the European session.
Oil West Texas Intermediate (WTI) was the previous week below $50 after not getting time closures over the ellipse that we draw in Orange, and that had been acting as resistance to the price of WTI oil.
The price of oil bounced after the decline in US crude inventories report. UU publishing the information administration of the energy (IEA). But the price of the oil WTI has been incapable of breaking the guideline top bearish red.
New retreat in the price of WTI oil leading to the price of crude oil to the zonal 48 dollars, commit first bearish target we plotted after the latest differences in indicators of the graphic newspaper.
Predisposition short-term on the price of oil will remain bearish while the WTI oil price is not able to sit above the Orange ellipse comes acting as resistance in its schema graph, and must watch the zonal contribution from its moving average of 30 sessions.
Time line indicator MACD of oil threatens to generate a dangerous Bull failure after the last cut on the upside. The indicator RSI of 9 hours falls finally to the level of oversold.
Japan 225 (Yen)
The main index of the bag of Tokyo, the Nikkei 225 has finished it session of this Monday with a light recoil of the 0.12%, falling until the level of them 17.425 points to the closing of the session Asian.
He Nikkei 225 broke in our graphic schema the guideline lower bullish accelerated that had drawn in color green, and fell towards the old level of resistance natural that until the moment has endured exercising as support for the quote of the index.
The price returns to find problems in the zonal of maximum immediate, by the weakness that alertábamos in them indicators RSI of 9 periods, and MACD schedule of our last analysis on the Nikkei 225
30 session of the Nikkei 225 moving average keeps cutting upward with his eponymous 100 session, but begins to show weaker in its graphic schedule. 100-hour moving average keeps the upward slope and strengthens the area of the level of support for the Nikkei 225.
Daily closures below the Orange dashed line could trigger a bearish movement strongest in the selective frequent quote, because the 9-period RSI and MACD indicators remain bearish divergence which we have been alerting the hourly chart of the Nikkei 225.
The pair EUR-USD got keep is it week last to the closing of the session European above the level of them 1.09 dollars, despite the fortress that comes showing the dollar in the market Forex.
The US dollar is redisplayed at the beginning of this week in the foreign exchange market, and at the junction with the euro, the EUR-USD pair moved down during the European session.
The contribution of the EUR-USD has failed to regain the level of its moving average of 30 sessions that maintains the downward slope in your graphic schedule.
The bullish divergence forming on the 9-period RSI indicator, could cause a stretch upward stronger if occur schedules locks above the moving average of 30 sessions.
The contribution of the EUR-USD has failed to regain the level of bullish lower guideline we have drawn in green. The hourly MACD histogram could be positive after the latest upward movement.