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The cyclicality of the Dollar index USDX) comes into focus this week

Some while ago I wrote an update here noting how the dollar had peaked last year right at the end of the third quarter. That saw the USD index (USDX) peak at 114.77 back then. Since that peak the dollar had fallen back to as low as 99.57 earlier this year, basing out in July. The rebound that has followed has seen it reach a high just last Friday, when it rose to 105.78. The index later closed on Friday at 105.58. That was its highest daily and weekly close since July. So, it is interesting to note the dollar is once again rising into the end of Q3 this year. So, does that mean we will see an identical peak this year at the end of the week, when Q3 draws to a close? Well, of course that is possible, but by no means a something to bank on, because right now none of the 3 major counterpart currencies look to be in a good place. Also, to repeat what was said here last week about the positive Golden Cross on the index is not to be overlooked either. Food for thought then, whichever way it goes into the final 3 months of the year. The USD index has traded in a range so far today covered by 105.51 to 105.63 and it is at the top end of that range right now
 

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