Friday, 6 November 2015

King Dollar pushing upward

USD remains king of FIAT land, and so far this month, is net higher by 1.1% @ DXY 98.11. Next key upside target is the giant psy' level of 100. Any monthly close >100, will open the door to another massive appreciation.. at least to the 120s.

USD, monthly1

USD, weekly


Suffice to note... the weekly MACD (blue bar histogram) cycle is turning positive.

The giant monthly cycle is offering price structure of a massive bull flag that been growing since the high of DXY 100.71 in March.

Implications of a higher USD should be pretty clear. In particular.. Oil/precious metals will be especially vulnerable to underlying downward pressure.

Update from Oscar

Looking ahead

Friday will see consumer credit data (3pm), but far more important to the market.. the latest monthly jobs data.

Market is expecting 190k net gains, with a slightly lower headline jobless rate of 5.0%. Any number much above 200K could be considered as 'good news as bad news' in terms of int' rates.

*it is highly notable that Fed official Bullard will be speaking in early morning.

Goodnight from London