USD slight bounce if only because traders are confused about the lack of consensus at the US Fed. 2 key members - New York Fed President William Dudley and Fed Governor Jerome Powell on Wednesday discussed the moves needed for the Fed to step in and apply the brakes should inflation start to rise. Moreover, minutes of the Fed's March meeting clearly demonstrated a wide divergence of opinions among policymakers which clearly sends signals to the market that the US Fed is divided and conflicted on the need for interest rate hikes. it is this lack of consensus amongst policy makers that is driving the current volatility on the USD. Follow in full at Bloomberg -
The bond markets though seems to shrug of this uncertainty and crude and gold trades narrow until we find the next set of economic data that could verify the slow down of US employment. One set of data in the NFP may jolt the market out of a former expectation but there needs to be several more key indications before a market can shift into a new gear and direction long or short. Until then choppy volatility remains the theme with key Fed and ECB statements pushing and pulling the markets either way alternatively in a sideways channel as with bullion and crude.
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
98.056 -0.002 -0.00%
Support 97.044 Resistance 98.964
EUR
1.078280 -0.004770 -0.44%
Support 1.07007 Resistance 1.09507
Crude Oil
51.00 +0.58 +1.09%
Support 50.04 Resistance 55.42
Gold
1202.265 -7.185 -0.59%
Support 1,189.2 Resistance 1,219.4
Pieter Bergli - DeLoren Trust Holdings
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