The U.S dollar was under great bearish pressure in the global market in the last couple of weeks but in last Friday the dollar pushed higher in the global market despite the mixed economic data release. The non-firm employment change data was 98 k whereas the average hourly income showed a decline. The U.S dollar suffered an extensive loss in the global market against most of its major rivals after Mr. Trump failed commitment regarding the increase of the fiscal spending and tax cut policy. Such a failure from the newly elected president Mr. Trump created a strong bearish sentiment in the global market and most of its major rivals started its bullish rally in the market. Though the dollar imposed a bullish threat however the investors are yet not convinced that the green bucks will push higher in the global market in the upcoming week. According to the leading economist researchers in the U.S economy, the current condition of the U.S economy is totally unclear and the professional traders are waiting on the sideline to trade the market until the mysterious cloud of doubt settles down in the global market.
Bullish Surge in U.S dollar: The mighty U.S dollar imposed a bullish threat in the global market after the release of the Friday’s economic data and most of the investors are still in doubt regarding the sustaining of the dollar strength as the U.S dollar index which measures the overall value of the green bucks strength against the six major pairs remained unchanged. Though the U.S dollar slipped sharply in the global market after the high impact data release on Thursday but soon the market pumped up as rate hike decision in the month of June remained unchanged and secured a new session high in the global economy. Thought the Non-farm Payroll data went down significantly but the impact of such bad data was greatly mitigated as the U.S unemployment rate fell down to 10 years low which is 4.5%.The upcoming week is going to play a vital role of the U.S dollar since the overall month performance will be reflected by the next week market movement. If the dollar bulls continue to push the market higher in the global economy for the rest of the month then we need another bullish surge in the upcoming week. However, an exhaustion in the bullish movement will surly create another strong bearish pressure in the green bucks’ bullish recovery attempt in the commodity trading easy market.
Possible rate hike in June: The year 2017 is going to play an important role in the U.S economy as FED is most likely to hike their interest rate on the basis for three consecutive times out of which one has already been implemented. According to the leading economic researchers in the world economy, an immature rate hike in the U.S interest rate will make the U.S dollar weaker in the long term scenario and the investors are cautiously waiting on the sideline until the market gives them precise direction regarding its next movement. In last Friday the U.S dollar index gain near about 0.29% in the global market and traded at 100.90 prior to the market closing hitting the session high. Though the last week high impact data release was not so convincing yet the rate hike program in the month of June remained unaffected and still there is 58% chance of second-time rate hike in the U.S interest rate. To be precise the dollar is still holding its ground in the global market due to their projected rate hike in the year 2017 and most of the optimistic dollar bulls are buying the dollar at the dip and pushing the market higher in the global economy.
Currency market overview: In the last Monday most of the dollar rivals started a bullish recovery from the very begging of the week, however, a strong strike from the dollar pushed the dollar higher prior to the week closing. The EURUSD pair slipped in the global market and broke the 100 days daily moving average support line and traded at $ 1.0609 with a cumulative loss of 0.33 percent. On the other hand, the Great Britain pound suffered extensive loss for near about 0.58 percent and traded at $1.2397.The loss in the GBPUSD pair was extremely intensive as the UK manufacturing data came out negative in the global market. The U.S dollar remained unchanged while the USDCAD pair dropped by 0.22percent and traded at$1.2283 in the global market. To be precise in the dollar bulls managed to call the week closing by imposing a bullish threat in the currency market. The next week is going to play a major role since the market might give some clue regarding the next movement of the green bucks in the global economy.
Summary: Due to the strong surge from the U.S dollar bulls, the bullish recovery attempt from most of its major rivals has been ceased. The upcoming week is going to play a major role since a bullish closing will secure the dollar bulls a strong ground in the global economy. However, a slip in the U.S dollar index will result in another bullish recovery attempt in the global market. If the FED remains rigid to their interest rate hike decision in the month of June then we will see a slow but steady gain in the U.S dollar index in the rest of this month.