SHOULD DOLLAR BEARS THROW IN THE TOWEL?

Photo Credit: Mt4 Terminal

Today is the first day of a full pack action week on the financial market especially on the forex market. A full plate of economic data and speeches await us, as investors and traders prepare to go through line by line the impact of headlines on the market.

Over the weekend many investors watched with glee the overall performance of the USD on the pre-market as the  meeting between President Trump and Prime Minister of Japan, Shinzo Abe proceeded. From all indication it was a successful meeting between the two economic partners. 

Reports indicated that the meeting was devoid of talks about the forex market which was refreshing for dollar bulls. Somehow, the trump rally that occurred after the election is showing its head ones more.  The signs are showing on bond yields as US 10-year yield bonds is recovering well and the dollar index is much firmer above 100.

On Tuesday and Wednesday, Federal Reserve Chair, Janet Yellen, will give her first semi-annual monetary policy testimony before the Senate Banking Committee and House Financial Service Committee respectively.

There is a general consensus that Yellen is hawkish on rate hikes and at the moment there is a general view that all is going well as plan for some rate hikes this year. The US economy is doing well with unemployment rates down, consumer confidence high and the prospects of tax cuts makes it juicier for investors. 

Although there was disappointment with weekly and hourly wage data released few weeks ago, financial market experts are optimistic about wage and income going up by the end of the first quarter.

The USD/JPY hit two weeks high of 114.161 during the Asian market. There is risk appetite for a further uptrend to take and control the 114 region. 

From the look of things, if nothing negative choke this rising optimism, bulls are going to dine for a long time however, nobody should underestimate the power of bears because all it takes is a slip in data or a tweet to strengthen them.

DISCLAIMER: THIS ARTICLE IS BY NO MEANS AN INVESTMENT ADVISE. THERE ARE GREAT OPPORTUNITIES IN FOREX TRADING AS WELL AS RISKS. THIS PIECE AND ALL ARTICLES ON THIS BLOG ARE FOR INFORMATION PURPOSE.