USD Index Stays Above 100 as Trump Likes Strong Dollar Now

U.S. Dollar Bulls should be very happy...

USA (1)

One day after U.S. Federal Reserve Chairman Jerome Powell rejected the idea of implementing negative interest rates, President Donald Trump expressed his support for a strong dollar.

On Thursday, in an interview with Fox Business Network's "Mornings with Maria" program, Trump said: "It's a great time to have a strong dollar, (...) Everybody wants to be in the dollar because we kept it strong. I kept it strong, (...) Right now it's good to have a strong dollar. Right now having a strong dollar is a great thing."

This is in sharp contrast to his repeated complaints against a strong dollar not long before.

While the eurozone and Japan are currently implementing negative interest rates, the U.S. is likely to keep rates positive (though close to zero) in the foreseeable future. And now Trump does not mind a strong dollar. These will keep the greenback on a Bullish Bias.

U.S. Dollar Bulls should be very happy.

As shown on a Daily Chart, the ICE U.S. Dollar Index stays comfortably at levels above the psychologically-significant level of 100.00.


Source: GAIN Capital, TradingView


In fact, it is trading at levels above both 20-day and 50-day moving averages.

In case a third attempt to break above the Overhead Resistance at 101.00 (previous two attempts were made in April) results in a success, the next Resistance at 103.00 (year-to-date high seen in March) would come into sight.

Only a return to the Key Support at 98.55 would bring about a Bearish Reversal.


More from Dollar

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.