Friday, January 1 2016

The US Dollar index that is measure by DXY hasn’t been able to break the 100.00 mark. On January 15, 2016, 3:23pm EST, DXY stands at 98.88 that’s -0.19% from the previous day. Even though The FED has started it’s expansion policy and the overnight interest rate has gone up to 0.50 from 0.25, the DXY index is having trouble breaking the 100.00 nark.

The FED is planning to increase their interest rate throughout 2016 unless economical indicators like low inflation or a worsening job market arises. The increasing of the FED’s interest rate creates a high probability of a bullish DXY. The bullish trend would cancel if we still have good economic data from the US like increase in interest rate and the DXY not breaking the 100.00.

Commodity currencies like the NZD and AUD have been dropping along with the security markets and are expected to continue dropping for the short to medium time. 

I’m still bullish on the dollar especially with the commodity currencies, but I’m precarious about being at the end of the trend. Our incoming data are indicating that we might be hitting the end of the trend and we are planning accordingly to maximize profit.