|Historical Data for Fed Fund Rates|
USD might be surprised a lot of Investors but the strong Fundamentals of US Economy made USDIndex bounce back from 88 levels, recently trading at sharp 92 levels. The recent correction in Dow and surprising event data increase in GDP at pace of 2.4%.represented the growth and expansion of US economy.
The Bounce in the USD Making the things worse for global Business made global sectors side lined. If we exclude few sectors such as Services, energy sector and financial sector the rest sector waiting for sharp global cues.
Let’s have look on USDIndex chart few things to explain technically.
|Click to zoom USD Index weekly Chart|
In Weekly chart of USDIndex we have better representation of Investors and bounce, the chart is holding the weekly trend line . The levels of bounce marked as 88 zone. This Bounce Made break in trend Line in USDIndex and reaction we could see over EUR,Pound,And Yen .We have seen recent sharp rally in USDJPY after Investors found nicest level to go longs . we could see the rally in continuation because there is decent data on employment. NFP and Industrial Output was on record high too .The current Interest rates for USD stands at 1.75 %which is highest in last 5 years .Yields of US Bonds rise more than 3%. This rise was bearish for Global Economic environment.