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Who’s ready to trade the dollar this week?

No Fed or top-tier release this week, which suggests that the dollar will take cues from market risk sentiment.

Here’s a short list of this week’s potential catalysts!

Lower-tier releases

  • Existing home sales (Jul 22, 2:00 pm GMT) expected to jump by 23.0% after 9.7% dip in May
  • Weekly initial jobless claims (Jul 23, 12:30 pm GMT) expected to add another 1.30M claimants this week
  • Markit manufacturing PMI (Jul 24, 1:45 pm GMT) to hit the expansionary zone (from 49.8 to 51.5) in July?
  • Markit services PMI seen improving from 47.9 to 50.4 in July
  • New home sales (Jul 24, 2:00 pm GMT) expected to add 700,000 sales in June

Overall dollar demand

  • Coronavirus cases in the U.S., stimulus and vaccine updates and reopening prospects will continue to affect demand for the safe haven dollar
  • Earnings reports of companies like Tesla, Twitter, Microsoft, and IBM can also influence the dollar’s intraday trends

Technical snapshot

  • A 30-day snapshot of the dollar’s performance shows it’s in the red against most of its major counterparts
  • USD is only in the green (and not by a lot!) against the yen
USD Forex Pairs Performance from MarketMilk
USD Forex Pairs Performance from MarketMilk
  • Stochastic considers the dollar “oversold” against the euro on the daily time frame
  • It’s also nearly oversold against the Aussie, Kiwi, and pound
USD Forex Pairs Stochastic from MarketMilk
USD Forex Pairs Stochastic from MarketMilk
  • The dollar is on short AND long-term downtrends against AUD, NZD, EUR, CHF, and JPY
  • Watch out for retracement or reversal opportunities on USD/CAD and GBP/USD
USD Forex Pairs EMAs from MarketMilk
USD Forex Pairs EMAs from MarketMilk

Missed last week’s price action? Read USD’s price recap for July 13 – 17!