Select Language

DXY: Short covering Soon? - OCBC

Breaking news

DXY: Short covering Soon? - OCBC

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.04.22 19:14
DXY: Short covering Soon? - OCBC

update 2025.04.22 19:14

Dollar Index (DXY) continued to trade near recent lows and was last seen trading at 98.44, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Markets are questioning USD's status as a reserve currency

"Daily momentum is bearish, while RSI fell into oversold conditions. Support at 98, 97.65 levels. Resistance at 99.5, 100.10 and 101.20 levels. USD sell-off may seem stretched for now. Short USD is also a big consensus trade and that warrants some caution especially if there is any short covering. But more broadly, we keep our view of a softer USD."

"Fundamentally, markets are questioning USD's status as a reserve currency and a safe haven. Ongoing US protectionist measures, weakening of US exceptionalism and ballooning US debt are some catalysts that should keep the 'sell USD on rally' trade intact. We continue to expect USD to trade weaker against major FX, including EUR, CHF and JPY over the forecast horizon as the USD credibility issue takes centre-stage in the immediate term while Fed cut cycle comes into focus in 2H 2025."

"USD may also trade softer against AxJs and antipodeans, but USD's decline may be more modest than against major FX, as we take into consideration the potential implication of tariffs on global growth, which can have a bearing on pro-cyclical AxJ FX. Week brings US prelim PMIs, Fed's beige book (Wed); durable goods orders, initial jobless claims (Thu). In Washington, G20 Finance Ministers and central bank governors will convene for a 2-day meeting on 23 - 24 Apr on the sidelines of the IMF, World Bank meetings."


Date

Created

 : 2025.04.22

Update

Last updated

 : 2025.04.22

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

China: April activity overshadowed by tariff war - Standard Chartered

Activity data points to softening momentum from Q1, but industrial production has held up. Frontloaded exports and macro policy implementation to continue to support growth in Q2. Property market remains the key drag for the domestic economy.
New
update2025.05.19 20:16

USD/JPY tumbles below 145.00 as Moody's downgrade weighs on the US Dollar

The Japanese Yen (JPY) extends its winning streak against the US Dollar (USD) into a fifth consecutive day on Monday, with USD/JPY falling below the 145.00 psychological mark to trade near 144.70 during the European session, driven by broad-based USD weakness and fresh hawkish signals from the Bank
New
update2025.05.19 20:11

USD: Moodys follows eventually with downgrade - MUFG

The US Dollar (USD) is softer and longer-term yields are higher with the S&P future down 1.0% suggesting the potential for a day of triple selling of US assets that is being driven by the decision of Moodys to downgrade the sovereign rating of the US from the top Aaa rating to Aa1.
New
update2025.05.19 20:05

FXS Fed Sentiment Index stays in hawkish territory as markets await fresh comments

The Federal Reserve (Fed) left the interest rate unchanged at 4.25%-4.50% following the May policy meeting, as widely anticipated. In the policy statement, the Fed noted that the economic outlook uncertainty has increased further.
New
update2025.05.19 20:02

AUD/USD Price Forecast: Jumps to near 0.6450 on US downgrade

The AUD/USD pair gains sharply to near 0.6450 during European trading hours on Monday. The Aussie pair strengthens as the US Dollar (USD) underperforms after Moody's downgraded the United States (US) Sovereign credit rating to Aa1 from Aaa in the wake of mounting debt levels.
New
update2025.05.19 20:00

USD/CNH: Expected to trade in a sideways range of 7.1990/7.2190 - UOB Group

US Dollar (USD) is expected to trade in a sideways range of 7.1990/7.2190. In the longer run, a breach of 7.2330 would indicate that the likelihood of USD declining to 7.1700 has faded, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.05.19 19:57

USD/CNH holds below key resistance - BBH

The Chinese yuan remains under pressure as April's economic data came in softer than expected, reinforcing calls for further policy support to sustain growth, BBH FX analysts report.
New
update2025.05.19 19:54

USD/JPY: Major support at 144.50 is unlikely to come under threat - UOB Group

US Dollar (USD) could drop below 144.90 against Japanese Yen (JPY); the major support at 144.50 is unlikely to come under threat. In the longer run, USD remains in consolidation, but likely within a tighter range of 144.50/147.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.05.19 19:40

China: April data show hit from trade war pre-Geneva - ABN AMRO

April data confirm hit from trade war escalation last month. Growth momentum expected to pick up again following Geneva truce, but uncertainty remains, ABN AMRO's economist Arjen van Dijkhuizen reports.
New
update2025.05.19 19:37

Who has to pay the US tariffs? - Commerzbank

Economics normally suffers from a painful deficiency: unlike biologists, physicists, psychologists, and other scientists, economists are generally unable to conduct experiments.
New
update2025.05.19 19:34

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel