Will US Data Help USDOLLAR Shake Off Weekly Doji?
- A quiet week comes to an end with a bang - key US data due.
- USDOLLAR Index mostly unchanged past few days, currently closing in on a weekly doji candle.
- August is typically a bad month for risk and a good month for the US Dollar - see the August forex seasonality report.
Finally! After a quiet week on the economic calendar for the US Dollar, there are reports due over the coming hours that could help the greenback shake off its week-long comatose. Indeed, with a weekly doji having formed up to this point, candlesticks are telling us what we already know: short-term measures of implied volatility (1-week, 1-month) have fallen down to pre-January 2015 (ie, when the SNB removed the EUR/CHF floor) levels.
Absent today's US economic data, is should be easing sailing into the end of the week for markets...but keep an eye on the stubborn Japanese Yen (as US equities run to all-time highs, USD/JPY has failed to keep pace).
See the video (above) for technical considerations in EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/JPY, and the USDOLLAR Index.
Read more: USDOLLAR Index Yo-Yos; Aussie and Kiwi Break Conventional Wisdom
--- Written by Christopher Vecchio, Currency Strategist
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