The U.S. Dollar is on the Rise, with the FX Volatility; the Feeling is Acidification?

USD USD USD USD * PRICE OUTLOOK US DOLLAR INDEX, foreign EXCHANGE VOLATILITY ASCENSION, AS THE MARKET RISK APPETITE DETERIORATES

• The price in dollars of the action of the catches pray on the back of rate FOMC of the orientation and the increase of risk aversion
• DXY index readers more deeply in the 100.00 handle all of Dollar is gaining ground
• The US Dollar could be slightly higher if the market sentiment continues to decline

The U.S. Dollar is rising, and shows potential to continue the climb the post-Powell. It is in the light of comments from the President of the Federal Reserve, which is an echo of the opposition to the idea of negative interest rates. The federal reserve chairman, and mr. Powell has also spoken with an unencouraging tone, minimized the importance of the prospect of a V-shape recovery of the probably inevitable corona virus of the recession, which has likely given a boost to the anti-risk US Dollar as well.

DXY INDEX, A US DOLLAR PRICE CHART, DAILY TIME FRAME (FROM 14 FEBRUARY TO 14 MAY, 2020).

Graphic created by @RichDvorakFX with TradingView

The U.S. Dollar is the force over the past two trading sessions has been pushed to the DXY index back above the psychologically significant 100.00 level of prices. Although recent Fed rhetoric to a negative interest rate policy, or IT, could provide a fundamental element of the design of the whole of the U.S. Dollar to be replaced by the user, the technical backdrop also seems to strengthen the USD, the price of the action.

Although the DXY Index seems to be relatively supported by his. The 50-day moving averagethe US Dollar could struggle to overcome its long-term downward trend as highlighted by a recent series of lower highs. As such, there is potential for the USD, the price of the share at the table of ping-pong back and forth between these keys support and resistance levels.

THE US DOLLAR IS THE IMPLICIT VOLATILITY OF THE BARGAINING AND OF GROUP (1 WEEK): EUR/USD, GBP/USD, USD/JPY, AUD/USD AND MORE

In general, there is a direct relationship between the direction of the US Dollar, and volatility. Seeing that the Dollar reigns king as one of the the top safe haven currenciesthere is a significant possibility that the USD’s share price could remain relatively supported, as long as risk aversion persists.

That said, based on the implied FX volatility (that is to say, wait the volatility of the currencies) has started to pick up, and has the potential to accelerate – particularly if the market sentiment continues to be kept. This may bode well for the U.S. Dollar and the DXY Index. Although, the 1-week implied of the US Dollar, the volatility readings remain below their average of the measured values of the last 20 days.

The main actors of the US Dollar and the volatility in the future probably will surround and high-impact dissemination of data and event risk, as detailed on the the economic calendar. On that note, the forex traders could focus on the upcoming reports on US retail sales and consumer confidence, due Friday, May 15 at 12:30 GMT and 14:00 gmt. respectively. This is considering the closely followed indicators of the economy of the state, the order of magnitude of the corona virus of the recession and weigh on risk appetite in turn.

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— Written by Rich DvorakAnalyst for the DailyFX.com

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