The US enjoyed the view of a full moon Thursday night through Friday morning, though market attention was focused on the Shooting Star pattern completed by the US dollar index yesterday. A Timeless Literature on Investment Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.

How Strong Is the Dollar?

New delayed trade updates are updated on the page as indicated by a “flash”. The US Dollar Index (DXY) is edging up, sparked by those European PMI numbers that reveal the whole Eurozone is in contraction. Pending US PMI data to be released later today, it looks like the performance gap between Europe and the US just got bigger in favor of the United States. Look out for some profit-taking ahead of the weekend, which might trigger a fade by the US closing bell on Friday evening. The US economic calendar did not bring much to the table, after the US Purchase Managers Index (PMI) release for November became even more important after the European ones were released this Friday.

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. Industrial production in Germany fell for the third-straight month in How to buy holo July, official data also showed Thursday, adding to a cocktail of woes for Europe’s largest economy.

DXY news

1. The Chinese yuan has slumped by 2.6% in that time to hit its lowest level against the dollar in 16 years.
2. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts.
3. So far in 2023, inflation and interest rate expectations have whipsawed back and forth.

In most of the major currency pairings, the U.S. dollar gained strength over the past 12 months. Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board. New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares. The Quote Overview page gives you a snapshot view for a specific index.

Highlights important summary options statistics to provide a forward looking indication of investors’ sentiment. The various market sectors are showing an interesting reaction to news the US is moving forward with a second Donald Trump administration. Corn, soybeans, and all three wheat markets smell of fish, for different reasons, early Thursday morning. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

Before the Bell spoke with Claudio Irigoyen, head of global economics at Bank of America, about the dollar’s rally and what it means for Americans and the world. March was the third straight month axi review of hotter-than-expected inflation readings. Inflation overall has recently been pushed up by climbing gas prices and stubbornly elevated housing costs.

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As long as prices remain above the average there is strength in the market. The U.S. dollar index is trading sideways, just above the psychological 100 level. While 100 is not technical support for the metric that measures the U.S. currency against other like-minded foreign exchange…

In addition, there are several ways for investors to profit directly from the rising dollar. The Invesco DB US Dollar Index Bullish (UUP) exchange-traded fund invests in U.S. The UUP has $1.3 billion in assets under management and it averages more than 3.8 million shares of daily trading volume. The good news for investors is a strong dollar can continue to benefit certain stocks that generate limited international revenue. Bank of America recently screened for S&P 500 stocks that have historically had the most positive correlation to the strength of the dollar over the past decade.

Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. I don’t think you’re going to have a weakening of the dollar until you have more convergence in growth or in monetary policy.

Investors willing to take on more risk for more potential upside can also directly buy U.S. dollar futures or options contracts. Any investor trading these types of derivatives should understand how they work and the risks involved. The top stocks Bank of America found were helped by the rising dollar include Huntington Ingalls Industries (HII), Darden Restaurants (DRI) and Clorox (CLX). John Lynch, chief investment officer at Comerica Wealth Management, warns that investors shouldn’t expect the dollar to weaken anytime soon. The dollar also has a negative historical correlation to fiat currency alternatives, such as gold and Bitcoin.