U.S. Dollar In Front Of Negative Rates
Christophe Chevalier May 13, 2020 2:37 AM
The negative rates topic will be the main topic of the day in the U.S.
U.S. Fed President Jerome Powell will speak later today and there is no doubt that the negative rates topic will be raised as U.S. President Donald Trump tweeted yesterday: "As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the 'GIFT'."
From a technical point of view, on a daily chart, Dollar Index is searching for a trend as it stands between two trend lines and is trading around its 50-day moving average (in blue). The daily RSI stands around its neutrality area. Readers may therefore consider the potential for further advance in case of a break above April top at 101.00 which would lead to March high at 103.00. The nearest support would be set at Mar. 30 bottom at 98.30. A break below this threshold would lead to further weakness towards horizontal support at 97.40.
Source: TradingView, GAIN Capital
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