The US dollar advanced unusually strongly yesterday, rising sharply almost everywhere, with especially noteworthy rises against the GBP, the EUR, the JPY, and silver. This is in line with the bullish long-term trend in the greenback, suggesting that the Forex market is offering some good trading opportunities right now, with the odds in favor of continuing dollar advances, especially against the GBP, the EUR, and silver. Volatility is unusually high, which is another good sign for traders.
The rise in the US dollar is being given a tailwind by the US debt ceiling crisis and a perception that the Federal Reserve has made a shift towards a more hawkish policy of earlier QE tapering and an earlier hike in the interest rate.
Most global stock markets fell a little yesterday, but have recovered somewhat since.
Today will see the release of final US GDP data and unemployment claims numbers, followed by testimony from the chair of the Federal Reserve and the Treasury Secretary before Congress.
Last week saw the fifth consecutive weekly fall in global new confirmed coronavirus cases after over 2 months of weekly rises, suggesting the global wave driven by the delta variant has peaked.
It is estimated that 44.9% of the world’s population has received at least one dose of a coronavirus vaccination.
Total confirmed new coronavirus cases worldwide stand at over 234 million with an average case fatality rate of 2.05%.
The rate of new coronavirus infections appears to now be increasing most quickly in Armenia, Australia, Barbados, Belarus, Belize, Brunei, Cambodia, Estonia, South Korea, Laos, Latvia, Lithuania, Romania, Singapore, Slovakia, and the Ukraine.
Forex Today: US Dollar Soars
Adam Lemon
The strongly rising US dollar creates an active, trending Forex market as it hits new highs.