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US Dollar soars after record inflation data

US Dollar Index, index, US Dollar soars after record inflation data

Dollar rose sharply on Wednesday after the release of strong US inflation data.

The dollar index bounced back from late-February lows of around 90, which have already provided support several times this year.

Dollar has moved higher as inflation has revived speculation of a rate hike. The pace of price growth continued to gain momentum last month, contrary to expectations of stabilization. The overall price index rose 0.8% for April, against the expected 0.2% and 0.6% for March. Annual inflation accelerated to 4.2% from 2.6% a month earlier.

The monthly jump in core inflation of 0.92% in April was a record for the last 40 years. American statistics saw similar values only in the early 1980s, when the Fed was struggling with hyperinflation with a double-digit key rate.

It's easy to see that this acceleration goes well beyond the low base (associated with the pandemic). The driver was the price of used cars (+10%). The increase in this category accounted for a third of the growth in the CPI index.

The main reason for accelerating inflation is the boom in the stimulus-fueled American economy. After a trillion-dollar aid package from the Trump administration, the US authorities poured another $ 1.9 trillion into the system after the arrival of Biden, who is also preparing a $ 2.25 trillion infrastructure investment plan.

The "banquet" is paid for by the "printing press" of the US Federal Reserve, which increased the balance sheet by $ 3.16 trillion last year — and by another 417 billion in January-April. A tsunami of Dollar-denominated liquidity is driving commodity markets at a rate that exchanges haven't seen in decades.

More expensive raw materials force manufacturers to raise prices: a survey of small businesses conducted by the NFIB showed that 36% of entrepreneurs increase the cost of their products, which is a record since 1981.

Dollar and US government bond yields will rise if US inflation continues to accelerate. The April inflation data is unlikely to change the US Federal Reserve's view on the temporary nature of inflationary pressures.

The acceleration of inflation has revived speculation of an imminent tightening of monetary policy, causing increased traction in the dollar. Now it's up to the Fed. Signals from the FOMC that this report does not affect monetary policy will turn the markets 180 degrees, as investors will look for insurance against inflation in purchases of raw materials and foreign currencies.

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Forex signals for USDCAD, EURUSD and GBPUSD on 07/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 07/12/2022 USDCAD signalsThe USDCAD forex pair is trading within an uptrend on a 4-hour chart. On it, you can see that the USD/CAD exchange rate is trading above the moving average with a period of 55, which corresponds to the level of 1.3497 and contributes to an increase in the price of the British pound in the short term. I recommend buying in this pair based on the current trading situation.The signal to open a buy position will be a breakdown and consolidation above the resistance at the level of 1.3667 in order to continue increasing to the resistance at the level of 1.3757 and in case of its breakdown and consolidation - to the level of 1.3760.  The stop loss for this strategy is placed at the level of 1.3485.The signal to open a deal for sale will be a breakdown and consolidation below the support at 1.3575 in order to decrease to the next level of 1.3497 and in case of its breakdown - further to 1.3397. Stop loss with this strategy can be placed at the level of 1.3675.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of a breakdown at the end of the hour and consolidation above the resistance level of 1.0477 in order to increase further to the area of 1.0502-1.0527. We put the stop loss below 1.0440.I recommend opening short positions after the breakdown at the end of the support hour at 1.0455 in order to reduce to support at 1.0426-1.0397. Stop loss above 1.0485.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed and the average is urgently predisposed to an increase.In this technical situation, the pound can be bought when the 1.2097 level is broken, you can also place a pending buy order at 1.2020 in order to increase the resistance area at 1.2437-1.2534 levels, stop loss with this strategy can be placed at 1.1990.
Dec 07, 2022 Read
Forex signals for USDCAD, EURUSD and GBPUSD on 06/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 06/12/2022 USDCAD signalsThe USDCAD pair is trading within an uptrend on a 4-hour chart. On the chart, you can see that the USD/CAD pair is trading above the moving average with a period of 55 na (1.3450 level), which generally contributes to the price increase in the short term. I recommend buying for this pair based on the current wave model.The signal to open a long buy position will be a breakdown of resistance at 1.3597 in order to increase to resistance at 1.3667 and in case of its breakdown - further to 1.3756. I recommend placing a stop loss at 1.3485 with this strategy.The signal to open a short position for sale will be a breakdown of support at the level of 1.3497 with the aim of the smallest decline to support at the level of 1.3393 and in case of its breakdown - further to 1.3301. With this strategy, it is better to place the stop loss at the level of 1.3615.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the 4-hour chart. I recommend opening long buy positions in case of a breakdown of resistance at the level of 1.0539 with a further goal of growth to resistance at the levels of 1.0566-1.0593. We place the stop loss below the 1.0470 level.I recommend opening short positions after the breakdown at the end of the support hour at the level of 1.0544 in order to reduce to support at the level of 1.0514-1.0485. The stop loss is above 1.0605.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed and the average is urgently predisposed to an increase.In this technical situation, the pound can be bought from the level of 1.2153, you can also place a pending buy order at the level of 1.2051 in order to increase into the resistance area at the levels of 1.2437-1.2534, stop loss with this strategy can be placed at the level of 1.2020.
Dec 06, 2022 Read
Forex signals for USDCAD, EURUSD and GBPUSD on 05/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 05/12/2022 USDCAD signalsThe USDCAD pair is trading within a downtrend on a 4-hour chart. It shows that the USD/CAD exchange rate is trading below the moving average with a period of 55  слоые to the level 1.3428, which generally contributes to the price reduction in the short term. I recommend sales on this pair based on the established wave model.The signal to open a long position (buy) will be a breakdown of the resistance level at 1.3597 with the aim of growth to the resistance at 1.3667 and in case of its breakdown to 1.3756. The stop loss for this strategy can be placed at the level of 1.3485.The signal to open a short position (sell) will be a breakdown of support at 1.3393 with the aim of reducing to support at 1.3301 in case of its breakdown at 1.3227. The stop-loss for this strategy can be placed at the level of 1.3515.EURUSD signalsThe EURUSD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of a breakdown at the end of the resistance hour at the level of 1.0585 with the aim of rising to the resistance at the level of 1.0613-1.0640. Stop-loss below the 1.0530 level.I recommend to open short positions after the breakdown at the end of the support hour at 1.0544 in order to reduce to support at 1.0514-1.0485. Stop loss above 1.0605.GBPUSD signalsBased on technical modeling for the pound/dollar pair, a forecast of further movement has been formed, and the average is urgently predisposed to increase.In this technical situation, the pound can be bought from the level of 1.2286, you can also place a pending buy order at the level of 1.2128 in order to grow to the resistance area at the level of 1.2437-1.2534, a stop with this strategy can be placed at the level of 1.2020.
Dec 05, 2022 Read
Forex analytics & signals for USDCAD, EURUSD & GBPUSD on 02/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analytics & signals for USDCAD, EURUSD & GBPUSD on 02/12/2022 USDCAD signalsUSDCAD is trading in a downtrend on the 4-hour chart. You can see on the chart that the USD/CAD is trading above the moving average with a period of 55, which corresponds to the level of 1.3431. This generally contributes to the rise in price in the short term. I recommend to sell on this pair.The signal to open a long position will be a breakdown of the resistance at 1.3597 with the aim of further rise to the resistance at 1.3667. In case of breakdown at 1.3667, further down to 1.3756.  Stop-loss may be placed at the level of 1.3490.The signal to open a short sell position will be a breakdown of support at the level of 1.3393, with the aim to decrease to the support at 1.3301. In case of its breakdown - further to 1.3227. Stop loss in this strategy can be placed at the level of 1.3515.EURUSD signalsEURUSD is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of breakdown of the resistance at 1.0532 with the aim of going up to the resistance at 1.0559-1.0585. I recommend to place stop loss below 1.0490.I recommend opening short positions after breakdown of support at the level of 1.0506 with the aim to go down to the support in the range of 1.0480-1.0456. I recommend putting a stop loss above 1.0555.GBPUSD signalsOn the basis of technical modeling on pair GBP/USD there is a forecast of the further movement and the pair is inclined to rise.In the given technical situation pound can be bought from the level of 1.2221, you can also place pending buy order at the level of 1.2095 to increase to the resistance area in the range of 1.2360-1.2468, stop-loss in the given strategy can be placed at the level of 1.1880.
Dec 02, 2022 Read
Forex analytics and signals for USDCAD, EURUSD and GBPUSD on 01/12/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analytics and signals for USDCAD, EURUSD and GBPUSD on 01/12/2022 USDCAD signalsThe USD/CAD pair is trading within an uptrend on a 4-hour chart. The chart shows that the USD/CAD rate is trading below the moving average with a period of 55, which corresponds to the level of 1.3432. This helps to reduce the price in the short term. Recommendation - sales for this pair based on the established wave model.The signal to open a long position, to buy, will be a breakdown of resistance at the level of 1.3497 in order to increase the rate to resistance at the level of 1.3597. If this level is deflected, it will move further to 1.3667. At the same time, I recommend placing the stop loss at 1.3380.The signal to open a short position, to sell, will be a breakdown of support at the level of 1.3393 with the aim of further decline to the next support level of 1.3301. When it breaks through, it goes further to 1.3227. I recommend placing the stop loss with this strategy at the level of 1.3515.EURUSD signalsThe EUR/USD pair is trading within the ascending price channel on the hourly chart. I recommend opening long positions in case of breakdown and consolidation of the resistance at 1.0449 by the hourly candle in order to further increase to the resistance at 1.0475-1.0498. It is desirable to set the stop loss below 1.0390.I recommend opening short positions after the breakdown at the end of the support hour at the level of 1.0403 and with the further aim of reducing to support in the range of 1.0379-1.0354. We set the stop loss above the 1.0455 level.GBPUSD signalsBased on technical modeling for the pound dollar pair, a technical forecast of further movement has been formed and the pair is predisposed to increase in the medium-term perspective.In this technical situation, the British pound can be bought from the level of 1.2027 and place a pending buy order at 1.1981 with the aim of further increasing to the resistance area in the range of 1.2337-1.2468. With this strategy, it is better to place the stop loss at 1.1880.
Dec 01, 2022 Read
Forex analysis & signals for USDCAD, EURUSD & GBPUSD on 30/11/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex analysis & signals for USDCAD, EURUSD & GBPUSD on 30/11/2022 USDCAD signalsUSDCAD is trading on the 4-hour chart in an uptrend. On the chart, you can see that the USD/CAD is trading above the moving average with a period of 55 (level 1.3425), which generally contributes to the growth of the price in the short term. I recommend to buy on this pair on the basis of the existing wave pattern.Breaking through the resistance at 1.3597 will be a signal for opening a long position, with the aim to reach the resistance at 1.3667 and if it is broken through, further to 1.3756. I recommend placing a stop-loss for this strategy at 1.3490.The signal to open a short position will be a breakdown of support at 1.3393 with the aim to lower it to the next support at 1.3301 and if it is broken down, further to 1.3227. Stop loss in this strategy may be placed at 1.3515.Taking into account that the moving average and the location of the technical figure boundaries move over time, it is necessary to make adjustments in their positions on the 4-hour chart.EURUSD signalsThe EURUSD is trading in the descending price channel on the hourly chart. I recommend opening long positions in case it breaks through the resistance at 1.0361, aiming for further rise to the resistance at 1.0383-1.0407. Stop loss should be set below 1.0310.I recommend opening short positions after breakdown of support at 1.0319 with the aim of further decline to the support at 1.0293-1.0266. Stop-loss is set above 1.0375.GBPUSD signalsOn the basis of technical modeling on pair pound/dollar the forecast of the further movement was formed. The pair is inclined to the decrease.In this technical situation it is possible to put the pound on sale from the level of 1.2024 and also to place pending sell order at the level of 1.2115 with the purpose of decrease to the support area at the level of 1.1603-1.1333; stop-loss for this strategy can be set at the level of 1.2175.
Nov 30, 2022 Read
Forex signals for USDCAD, EURUSD and GBPUSD on 29/11/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex signals for USDCAD, EURUSD and GBPUSD on 29/11/2022 USDCAD signalsUSDCAD is trading within the uptrend on the 4-hour chart. It shows that the USDCAD is trading above the moving average with a period of 55 (level 1.3394), which generally contributes to the rise in the price of the American dollar in the short term. Based on the wave model, I recommend to buy on this pair.The signal to open a long buy position will be a breakdown of the resistance level at 1.3497, with the aim to go higher to the next resistance at 1.3574, and in case of its breakdown, further to 1.3667.  I recommend to place a stop-loss for the strategy at 1.3380.The signal to open a short position will be a breakdown of support at 1.3393 with the aim to lower it to the next support at 1.3301, and if it is broken down, further to 1.3227. I recommend to place a stop-loss for this strategy at 1.3515.EURUSD signalsEURUSD is trading within the ascending price channel on the hourly chart. I recommend opening long buy positions in case of breakdown of the resistance level 1.0395 with the aim of further rise to the resistance level of 1.0422-1.0447. I recommend setting a stop loss below the level of 1.0350.I recommend opening short positions after breakdown of the support level 1.0364 with the aim to go down to the next support level 1.0332-1.0305. I recommend setting a stop-loss above 1.0405.GBPUSD signalsOn the basis of technical modeling on pair pound/dollar the forecast of the further movement was formed. The pair is inclined to the decrease.In the given technical situation I recommend to sell from the level of 1.2025 and also to place pending sell order at the level of 1.2115 with the purpose of decrease to the support level 1.1593-1.1333; stop-loss is better to place at the level of 1.2175. 
Nov 29, 2022 Read
Forex Signals for USDCAD, EUR/USD & GBP/USD on 25/11/2022
EUR/USD, currency, GBP/USD, currency, USD/CAD, currency, Forex Signals for USDCAD, EUR/USD & GBP/USD on 25/11/2022 USDCAD SignalsUSD/CAD is trading in a downtrend on the 4-hour chart. On the hourly chart, you can see that the USD/CAD is trading below the MA with a period of 55, which corresponds to the level of 1.3372 and generally contributes to the decline in the price in the short term. I recommend to trade on this pair - buy on the basis of the existing wave pattern.The signal to open a long position will be a breakdown of the resistance at 1.3417, with the aim to rise to the resistance at 1.3497 and in case of its breakdown - further to 1.3574.  I recommend to place a stop-loss for this strategy at 1.3290.The signal to open a short position (sell) is a breakdown of the support at 1.3301, with the aim to continue lowering to the support at the next level 1.3227 and in case of further breakdown to 1.3149. Stop-loss in this strategy can be placed at the level of 1.3455.Taking into account that the moving average and the location of the technical figure boundaries move over time, it is necessary to make adjustments to their positions. I also recommend opening positions by the end of the hour to avoid false breakouts.EURUSD SignalsThe pair EUR/USD trades within the ascending price channel on the hourly chart. I recommend opening long positions (buy) in case of breakdown of the resistance at 1.0430 and further rise to the resistance at 1.0458-1.0488. Stop loss is set below the level of 1.0370.I recommend opening a short position after breakdown of support at 1.0382 and further decline to the support at 1.0354-1.0327. Stop loss is above 1.0435.GBPUSD SignalsTaking the technical modeling of the pound/dollar pair as a basis, you can form a forecast of further movement in this forex pair. The pair has a medium term tendency to rise.In the given technical situation it is recommended to buy the pound from the level of 1.2007, it is also possible to place pending buy order at the level of 1.1920 with the further increase aiming at the resistance range of 1.2263-1.2376, I recommend to place a stop at the level of 1.1745.Upon gaining a profit of 30 pips or more, we close 50% of the position, the remaining position is set at no loss. If this forecast for GBP/USD coincides with your personal opinion, you can confidently use this trading strategy. 
Nov 25, 2022 Read
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