The US Dollar Index reached a 1-month high yesterday, as US treasury yields rose, and hawkish comments emanated from the ECB.
- Over the past day, the US Dollar Index advanced to reach a new 1-month high following a period of consolidation. The Dollar made these same medium-term highs in the AUD/USD and NZD/USD currency pairs. This Dollar rise is accompanied by a rise in US treasury yields.
- Most stock markets have moved lower over the past day.
- In the Forex market, the US Dollar has been the strongest major currency since the Tokyo open today. The Australian Dollar has been the weakest, putting the AUD/USD currency pair into focus. There remains a valid long-term bullish trend in the EUR/USD currency pair but it will come into serious question if we get a daily close below $1.0900 at the end of today’s New York session.
- Cocoa futures reached a new multi-year high price last Friday, which will keep trend traders interested in this commodity on the long side. It has been exhibiting a powerful bullish trend for more than a year now.
- There will be an important data release today of Canadian CPI (inflation) data, which is expected to show a monthly contraction of 0.3%.
- There will be additional data releases today of:
- UK Claimant Count Change (unemployment claims)
- US Empire State Manufacturing Index
- The Governor of the Bank of England will be testifying before the UK Parliament
