The FX PostThe FX Post
    What's Hot

    FlatQube Trade Volume, Trade Pairs & Trust Score

    November 7, 2022

    Step Guide to Winning Forex Trading

    September 19, 2022

    Relationship Between Currency Risk and Foreign Bonds

    September 2, 2022
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home » DXY Forecast: USD Climbing Upwards Ahead of Today’s NFP
    Analysis Indices

    DXY Forecast: USD Climbing Upwards Ahead of Today’s NFP

    October 8, 20213 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Text USD and $(symbol)
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    On Friday, October 8, DXY broke yesterday’s pullback and crossed above the 94-mark. 

    • ADP Employment Change and Jobless Claims point to a higher NFP, which would support the Fed’s tapering concerns and a stronger USD.
    • While US Treasury rates favor bulls, the risk-on environment threatens the upward momentum.
    • The US Congress receives procedural support for extending the debt ceiling by $480 billion until December. 

    DXY fundamental forecast

    On Friday, the greenback rapidly sheds Thursday’s bearish price action, gaining a little around 94.30.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more

    Pre NFP roundup 

    During the early Asian session on Friday, the US Dollar Index picked up bids to 94.21, closing the day-start gap. 

    As a result, the dollar index maintains its late Thursday comeback but is in a weekly consolidation mood as risk-on sentiment confronts pre-NFP trade concerns.

    As the Federal Reserve’s shift away from financial crisis measures gets traction, it is expected to begin decreasing monthly asset purchases as early as November and follow up with interest rate hikes as early as next year.

    Debt ceiling 

    The debt limit extension of $408 billion until early December 2021 received 61 yes votes and 38 no votes in the US Congress. 

    Even though the final vote is on the way, the Democratic success in procedural voting is crucial since Biden’s party is in control and can push the package through the last hurdle.

    The successful Senate vote on raising the US debt ceiling limit has had little to no effect on the US dollar, trading nearly flat versus its key competitors.

    Key data releases from the US

    The non-farm payrolls for September will take center stage on the US calendar, with market consensus predicting that the economy gained 500K jobs last month, with the unemployment rate remaining at 5.1 percent from 5.2 percent. 

    What’s next? 

    The index maintains its weekly positive momentum far above the 94.00 level, ahead of the crucial September NFP report. The selloff in the debt market was fueled by positive news from the debt ceiling front, which pushed rates higher.

    Markets’ adjustments to chances for a quick start to the tapering process, anticipated rate hikes at some point next year, and the increasing perception that high inflation might endure longer than first thought continue to support the dollar in the long run.

    Positive outcomes from US fundamentals, combined with easing concerns over the Delta variant’s development, could soon boost the dollar’s positive outlook. 

    DXY technical analysis: key levels in action  

    DXY is well above the 100-day moving average on the daily chart, and the MACD is currently trading above its neutral level. 

    The next upward target for the index lies around 94.50, which was its September 30 high. If it crosses this level, it may go towards the next resistance at 94.74. 

    US Dollar Currency Index
    US Dollar Currency Index

    On the downside, the index support lies at 93.50. If the index slips downwards, the next support lies around the 92.98 level. 

    A key point to add here is that there is a possibility of a short-term downward trend before the greenback reaches its resistance level. But, the overall trend remains bullish for the index. 

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    DXY DXY Dollar
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    European Central Bank

    Christine Lagarde Solidifies ECB’s Message on Combating Inflation

    June 28, 2022
    Salesforce-backed front

    Salesforce-Backed Front Valued at $1.7 Billion in Financing Round

    June 28, 2022
    G7 countries to hit Russia

    G7 Countries to Hit Russia With Brand-New Assents

    June 27, 2022
    China's clean power growth

    China’s Clean Power Growth Outlook for 2022 Maintains Getting Bigger

    June 24, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    10  +    =  17

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • FlatQube Trade Volume, Trade Pairs & Trust Score
    • Step Guide to Winning Forex Trading
    • Relationship Between Currency Risk and Foreign Bonds
    • Best Social & Copy Trading Platforms
    • Bitcoin Dips Listed Below $20,000 With Fundstrat Considering ‘Last Washout’
    Featured Reviews
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    CryptoHero

    CryptoHero Review: Pros, Cons, Recommendations

    June 3, 2022
    Bitsgap

    Bitsgap Review: Pros, Cons, Recommendations

    April 29, 2022
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2023, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.