CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Security of Funds

Security of your funds is our number one priority. We safeguard our Client funds in top tier banks.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

DXY: Dollar could extend recovery in Q2

Fawad Razaqzada Fawad Razaqzada 06/04/2021
DXY: Dollar could extend recovery in Q2 DXY: Dollar could extend recovery in Q2
DXY: Dollar could extend recovery in Q2 Fawad Razaqzada
After the long Easter weekend, today is the first full trading day of the week and volumes should be significantly higher than both Monday and Friday. What this means is that traders will be paying more attention to today’s price action as a guide for market direction. FX traders will be watching for signs of strength for the US dollar after a strong non-farm jobs report on Friday was followed by a good ISM services PMI report on Monday and a good showing from JOLTS Job Openings today. Meanwhile, the US Covid-19 vaccination rate is currently nearly five times faster than the global average, according to a CNN analysis.

After a solid first quarter, the US dollar has started the new quarter on the backfoot. However, the faster rolling out of vaccines in the US combined with the various government stimulus measures means the US economy should be able to recover stronger and faster than the rest of the world. As a result, the Fed should become hawkish faster, as it will probably have to combat inflationary pressures building in the economy faster than it currently expects. This should therefore be positive for the US dollar, especially against currencies where the central bank is expected to remain dovish longer, or regions where vaccines are being administered very slowly.

In Q1, the US dollar was supported above all by rising bond yields as investors speculated that the Fed would have to tighten its monetary policy sooner than expected as record stimulus measures would overcook inflation. The dollar was also supported by weakness in foreign currencies, especially safe haven currencies such as the Japanese yen and Swiss franc, while the euro also weakened noticeably as authorities there struggled to deliver the Covid vaccines. Haven assets sold off, along with government bond prices, as investors chose the racier equity markets and Bitcoin amid recovery hopes. For that reason, commodity dollars fared better, especially the Canadian dollar, which found additional support thanks to rising oil prices. The pound also did well, particularly in the first half of Q1 thanks to the UK’s rapid deployment of Covid vaccines.

EU’s Plan to Near-Virus Immunity by End-June too optimistic

But today, the euro rallied after Blomberg reported that most European Union member states will have sufficient Covid vaccine supplies to immunize the majority of people by the end of June. If correct, this would be much earlier than the bloc’s official target. Apparently, Germany, France, Italy, Spain and the Netherlands will all be in a position to fully inoculate more than 55% of their total populations, according to the projections in the document seen by Bloomberg. However, it remains to be seen whether the Eurozone will be able to meet this optimistic target. If the market also shares my doubts then the single currency should come under pressure again, leading to a potential drop towards $1.16s.

dollar indexSource: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

RDDT soars: here are the levels to watch in c...

By Alejandro Zambrano

26/03/2024

Weekly Index Dividends

By ThinkMarkets

25/03/2024

Reddit Launches IPO: Can the Struggling Compa...

By Alejandro Zambrano

21/03/2024

Weekly Index Dividends

By ThinkMarkets

18/03/2024

Weekly Index Dividends

By ThinkMarkets

11/03/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top