US Dollar rebounds with Stocks also higher


The US Dollar finally halted its decline last week, which was unexpected after disappointing US economic data. The Dollar Index (DXY) rose 0.7% to close the week up at 97.83.

The Euro turned over and remained under a lot of pressure before the ECB press conference. However, there was no real news in Mario Draghi’s last meeting as the ECB chairman and we now welcome Christene Laragarde as chairwoman. She will have a tough time on her hands following weak eurozone economic data. In light of this, EUR/USD finished the week trading below the all-important 1.11 mark.

The Pound was incredibly volatile again last week, however, the likelihood of a No-Deal Brexit is still considerably reduced, but the risk still remains as a No-Deal is still not completely off the table. Overall, the Pound gave back some of its recent gains and finished the week -1.2%, however traders are looking more towards the upside.

Another fairly quiet week on the Yen front, we saw a slight retreat but no real impulsive moves.

A fairly negative week for both pairs, which both fell around 0.7% on the week versus  the USD, mostly driven by a stronger US Dollar.

Stocks showed more strength and it is still clear to us that the risk is for more upside gains. Fairly positive US-China trade talks and signs of progress from the EU/UK boosted equities higher. The S&P 500 finished the week hitting new all-time highs rising over 1.1% to 3021, the DAX gained 1.8% to close at 12886, and the FTSE100 finished 2.2% higher at around 7324.

The Week Ahead
The week ahead will have traders’ eyes focused on the all-important EU/UK and US/China deals once again. With the October 31st Brexit deadline quickly approaching and the most likely outcome being a further extension, yet again we will likely see a very volatile week ahead for both GBP and EUR.

On the macroeconomic front we have CPI releases from the Eurozone, Germany, Australia, Japan, and Switzerland. As well as this we have the important interest rate decisions from the US and Canada, ending the week with the US Nonfarm Payroll release Friday. Until next week, Happy Trading!


Bryce has over 3 years of experience managing his own personal investment portfolio. In 2018 he completed a BA (Hons) degree from the University of Sussex in Event Management. He then went on to ta...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *

Latest Related News

Euro strength, Pound vulnerable – EURUSD and GBPUSD forecasts

A mixed, but broadly more negative US Dollar theme has been seen over the past 12-24 hours across Forex markets.This has been highlighted by a strengthening of the Euro against the US Dollar and a more positive technical tone upside risks for the EURUSD forecast, as we explore below.However, the Pound remains a laggard, still vulnerable versus the US currency, with trade talks still weighing,… Continued

Euro, Pound, Australian and New Zealand Dollars all point lower

Euro and Pound post negatives with Euro support distant (EURUSD and GBPUSD forecasts) Aussie and Kiwi approach major weekly zones of support (AUDUSD and NZDUSD forecasts)  Continued

Looking for Euro and Pound rebounds – EURUSD and GBPUSD forecasts

A more positive US Dollar theme has been seen over the past 24-48 hours across Forex markets as global financial markets flipped to “risk off” mode, as global stock indices have dipped after strong rallies.However, we continue to see an underlying “risk on” theme driven by:Prospects for a US economic relief package before the US electionGrowing prospects for a significant Biden win meaning a smoother… Continued

Sterling Surges As Dollar Declines Before Election Day

GBPUSD Spot is driven by COVID-19, Brexit and the U.S. electionIs the President in rude health? There is not any consistency in his messageMarket  sentiment will swing behind Sterling as the election draws nearSterling will soar to challenge the 200-day moving average GBPUSD Spot endured a sideway pattern of trading on Friday morning. However, this meaningless meander seemed to pivot at 1.2950 as Sterling found… Continued

US relief package hopes sees “risk on” phase resume

Macroeconomic/ geopolitical developments Republicans and Democrats have still been unable to come to an agreement on a new economic relief package, but hope remains, which has helped the “risk on” theme this past week. This was despite President Trump at one point stating that a deal would NOT be done before the election.The other significant geopolitical development last week President Trump leaving hospital in recovery,… Continued

Forex Brokers in your location


79% of retail investor accounts lose money


79,3% of retail investor accounts lose money


74,9% of retail investor accounts lose.


75% of retail investor accounts lose money when trading CFDs with this provider.