Since the end of June, the US dollar index has lost about 5% of its value, with bears continuing to dominate the market. Does this mean that dollar buyers have retreated for good? History shows that even long-time underperformers in the dollar’s six-currency basket, such as the yen, can sometimes challenge competitors for a stronger position. Thus, dollar bulls are unlikely to leave the stage without a fight.
As we approach the end of the week, the economic calendar is packed with reports that could have a major impact on the Federal Reserve’s stance ahead of its September 17-18 meeting. Some analysts are already cautioning investors against overly optimistic predictions about the Fed’s ability to act swiftly and aggressively.
If these expectations fall short, a preliminary sell-off in the US dollar could also prove to be excessive. In other words, sellers risk stretching the dollar’s elasticity too far. If things go wrong, the fallout could be quite painful.
As August draws to a close, the US dollar index is on track for its biggest monthly decline since November 2022. After testing the 100.5 mark, the greenback spent the first half of the trading week consolidating below the resistance level of 101 in anticipation of fresh economic data from both the United States and Europe.
For insights into how upcoming reports will affect currency rates, be sure to check our Trader’s calendar. In particular, it is worth paying attention to US GDP growth data for the second quarter, as well as consumer inflation levels, which are key indicators for the US regulator.
Markets are also closely watching the upcoming report from Nvidia. Since 2019, Nvidia's stock has skyrocketed by nearly 3000%! With a market cap of $3.2 trillion, the company’s stock price fluctuations have a significant impact on the broader market. As for the S&P 500 index, its outlook on Wall Street is positive. The index is likely to trade higher within an intraday range of 5,593 to 5,631 points.
The euro is trading near its 13-month high reached earlier this week. As traders await the next batch of important economic statistics, the euro is pulling back against the US dollar. In the medium term, the local high for the pair is seen in the range of 1.1200 to 1.1250.
On August 26 and 27, selling activity was quite muted, resulting in no dramatic price changes. For the euro to continue its bullish run, bulls will need to push the price above the resistance level of 1.1250. In this case, the medium-term uptrend will remain intact, allowing buyers to drive the pair to new price levels.
However, bear in mind that the euro/dollar pair is still in a pullback phase, which is in line with the cyclical component of the trend. This suggests the possibility of a further minor decline for the euro within the ongoing bullish momentum.
Brent crude oil futures are currently trading lower. Today’s decline follows a significant rise of over 7% in the previous three sessions, driven by concerns over escalating tensions in the Middle East and halted production at Libyan oil fields.
Although the market remains tense, the current lull has shifted traders' focus to technical analysis. Indicators are signaling growing short interest amid a return below the $80 per barrel mark.
If the price stays firm below this level, the downtrend could continue. Furthermore, renewed pessimism about Chinese demand has resurfaced as a key concern. As a result, economic fundamentals and technical indicators may work together to counteract the impact of geopolitical news and keep Brent crude oil prices on a downward trajectory.
There have not been any significant changes in the USD/RUB pair so far. The pair continues to move at the peak of its upward cycle, fluctuating within the range of 90.5–92.5 rubles. The upward momentum is still in force. Buyers of the US dollar are likely to become very active once the pair consolidates above 92.50 rubles.

00:00 INTRODUCTION
00:31 THE BEARS ARE PULLING RUBBER
01:15 USDX
01:37 FOR INFORMATION LOOK AT TRADER'S CALENDAR
01:57 S&P 500
02:30 EUR/USD
03:38 BRENT
04:26 USD/RUB

www.instaforex.com - reliable Forex broker since 2007

Read Forex analysis on https://www.ifxwork.com/forex_analysis

https://www.ifxwork.com

FX Analytics - https://www.ifxwork.com/forex_analytics
Forex Calendar - https://www.ifxwork.com/forex_calendar
Forex TV from InstaForex - https://www.ifxwork.com/instaforex_tv

Forex charts - https://www.ifxwork.com/charts
Instant account opening - https://www.ifxwork.com/fast_open_live_account
Forex Trading Contests - https://www.ifxwork.com/forex_contests

List of official InstaForex blogs:
https://www.facebook.com/instaforex
https://www.instagram.com/instaforex/
https://twitter.com/InstaForex

#forex_news #european_session #instaforex_tv