USD Index Stays Above 100 as Trump Likes Strong Dollar Now

U.S. Dollar Bulls should be very happy...

USA (1)

One day after U.S. Federal Reserve Chairman Jerome Powell rejected the idea of implementing negative interest rates, President Donald Trump expressed his support for a strong dollar.

On Thursday, in an interview with Fox Business Network's "Mornings with Maria" program, Trump said: "It's a great time to have a strong dollar, (...) Everybody wants to be in the dollar because we kept it strong. I kept it strong, (...) Right now it's good to have a strong dollar. Right now having a strong dollar is a great thing."

This is in sharp contrast to his repeated complaints against a strong dollar not long before.

While the eurozone and Japan are currently implementing negative interest rates, the U.S. is likely to keep rates positive (though close to zero) in the foreseeable future. And now Trump does not mind a strong dollar. These will keep the greenback on a Bullish Bias.

U.S. Dollar Bulls should be very happy.

As shown on a Daily Chart, the ICE U.S. Dollar Index stays comfortably at levels above the psychologically-significant level of 100.00.

Source: GAIN Capital, TradingView

In fact, it is trading at levels above both 20-day and 50-day moving averages.

In case a third attempt to break above the Overhead Resistance at 101.00 (previous two attempts were made in April) results in a success, the next Resistance at 103.00 (year-to-date high seen in March) would come into sight.

Only a return to the Key Support at 98.55 would bring about a Bearish Reversal.

Build your confidence risk free

More from Dollar

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.