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With the unexpectedly strong monthly non-farm employment in the United States, the possibility of the Federal Reserve raising interest rates within the year has increased. This has boosted the recent continuous strengthening of the US dollar index. At the same time, the continuation of the upward trend of the US labor market conditions index since January may also help the US dollar rebound, as the market expects this to provide comfort for the US Federal Open Market Committee to raise interest rates before the end of the year. space.
Generally leads and correlates with quarterly growth, and the correlation between and has been stable since the financial crisis. Above, the indicator is showing that the labor market and economy are improving enough to support a rate hike. level, so in theory it should also push the dollar to continue to strengthen. Although from a fundamental perspective, the U.S. dollar is very likely to continue to rise, from a technical perspective, the reason for being long on the U.S. dollar may be more far-fetched. The Ichimoku Balance Sheet has been putting pressure on the U.S. dollar index for three weeks, and the U.S. Index's weekly Ichimoku Balance Sheet has been posing strong resistance to it over the past three weeks. The U.S. index is moving back toward the middle of its long-term trend, but its directional momentum is still missing. The U.S. dollar index's breadth remains weak, while other broader U.S. dollar indexes such as the Bloomberg Dollar Index remain under upward resistance. From a technical perspective, investors may not have a good reason to be long the dollar.
Amidst many favorable circumstances, the U.S. dollar fell out of the bottom line in the U.S. market on Tuesday. So far, the U.S. dollar has stopped rising just after touching. Then the U.S. dollar index fell all the way back to .USD, and broke again after the opening of early trading on Wednesday. And this time the shorts were strong, and the US dollar fell directly below . And there is a continued downward trend during the day. This is surprising given the recent positive conditions.
With the weakness of the US dollar, such a golden opportunity will not be missed. Although it fell below the U.S. dollar under the pressure of non-farm payrolls, it later relied on its strong support to control the U.S. dollar and wait for the opportunity. As a result, the opportunity was quickly offered by the U.S. dollar. Silver prices have returned to strong gains just one day later and are poised to hit the US dollar after today's opening. If the US dollar can hold firm today, it may play a strong supporting role in the trend.
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