12.07 - USD is still very turbulent and unstable
- by Anna K.
So, USD is not letting go of our attention today even as 24 hours have passed after the effects of Powell speech kicked in. And today we might see another set of changes in the USD performance as there is another report incoming and we have to watch out. This one is very important – it’s PPI m/m and to put is simpler – it is a leading indicator of consumer inflation. The worse the economy is doing, the more producers are charging for their services and goods from the consumers. With consumers’ income remaining the same it leads to a low level of consumer ability. And to be honest we fear for the American economy and for the effects that this report might have on trading today and on Monday.
We can see the USD was attempting a break-out but the attempt was failed and doomed from the very start. Traders and the markets want to wait out PPI m/m first. Only after that we are going to be able to trust USD once again. Until then we need to store some patience up – the battle between the greenback and the markets is going to be brutal… for us.
After all, the strength and influence of the greenback absolutely should NOT be denied at any point of time.
All we can do in the situation is use our trading signals and tread very carefully.