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Forex Today: US Dollar Continues Retreat

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Monday’s market sees the US Dollar continue to trade lower.

  • The US Dollar continued to fall lower against every major currency yesterday, with the Euro rising notably strongly against it in the EUR/USD currency pair. The bearish Dollar move runs counter to the long-term trend, so could be prone to a major reversal.

  • Stock markets rose yesterday, but have weakened during the Asian session.
  • Cryptocurrencies, including Bitcoin/USD, are still not rising convincingly. However, Bitcoin’s key support level at $28,607 has continued to hold. This suggests that the line of least resistance in Bitcoin is likely to be upwards, so we may see a rise in value here over the coming days.
  • Commodities mostly rose yesterday, especially agricultural commodities, but even the best performers are off their recent highs.
  • There will be a release later today of the Reserve Bank of New Zealand’s Cash Rate and Monetary Policy Statement, which could trigger price movement in the New Zealand Dollar.
  • There will be a release today of German Flash Services and Manufacturing PMI data, which could trigger price movement in the Euro.
  • Daily new coronavirus cases globally rose last week after falling for eight weeks.
  • It is estimated that 65.7% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.7% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.
  • Total confirmed new coronavirus cases worldwide stand at over 528.2 million with an average case fatality rate of 1.20%.
  • The rate of new coronavirus infections appears to now be significantly increasing only in Belize, Chile, the USA, Jamaica, Panama, Portugal, and Taiwan.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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