. Dollar slips, still set for best month since 2015

Dollar slips, still set for best month since 2015

29 Apr 2022

DOLLAR INDEX is trading down 0.56% at 103.084

The dollar edged down from its recent 20-year high on Friday but was still on track for its best month since 2015, having been boosted by a combination of expectations for U.S. rate hikes and growth concerns in China and Europe.

In the final trading day of a seismic month for currency markets, major currency pairs pulled back slightly from their recent trajectories as global markets stabilised and investors took profit on dollar gains.

At 1047 GMT, the dollar index was down 0.6% on the day at 102.98, but still set for a 4.8% gain in April.

Weaker-than-expected U.S. growth data on Thursday did little to stop the dollar’s rise, with investors still expecting a 50-basis point rate hike at the Federal Reserve’s meeting next week.

Still, the euro was on track for a 4.5% monthly drop, its biggest fall since 2015.

The euro has lost around 6.6% versus the dollar since Russia’s invasion of Ukraine on Feb. 24, with investors concerned about Europe’s energy security, inflation and growth.

Euro zone inflation rose to 7.5% in April.

Dollar-yen stayed above the key psychological 130 level, at 130.085, having crossed 130 for the first time in 20 years on Thursday when the Bank of Japan vowed to stick to its super-low yield policy.

On technical fronts DOLLAR INDEX RSI stood at 82.68 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : DOLLAR INDEX – BUY: 102.97, TARGET: 103.41, STOP LOSS : 102.72