19 May economic news
The US Dollar is currently poised to achieve its best two-week performance since September, with a focus on resistance. The currency’s success can be attributed to an increase in demand fueled by bets on a debt ceiling deal and positive jobless claims data.
The Nasdaq 100 has achieved a remarkable breakout, surging to new heights in 2023 and defying the laws of gravity. This incredible feat was achieved by breaking through major technical resistance at 13,740 and reaching its highest level since April 2022. Despite this positive outlook, the market appears to be overbought and stretched, suggesting that a pullback in the near future cannot be ruled out.
The XAU/USD gold price has declined for three consecutive days and has hit its lowest level since early April. The primary factors causing this bearish trend are the strong U.S. dollar and the increasing U.S. yields.
The US dollar price is predicted to increase as the DXY index continues to rise due to positive economic data and higher US treasury yields. There is a possibility of another 25-basis point increase in interest rates by the Federal Reserve, which is contributing to the strengthening of the dollar. As a result, the DXY index has surpassed 103.0 and is expected to reach a high of 105.65 in March.
