Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Crédit Agricole: USD Growth Isn't Over Yet

Crédit Agricole: USD Growth Isn't Over Yet

Information is not investment advice

The rally of the US dollar has stopped for a while. That allowed risk-on assets (GBP, NZS, AUD, stocks) and also gold to recover some losses. Gold and the US dollar have a negative correlation. When the USD weakens, gold tends to rise, and vice versa. Traders are interested in the further movement of the US dollar as almost the entire market sentiment will depend on it.

Let’s understand why the market sentiment has improved. There is no clear catalyst for this turnaround in investors’ mood. We may assume that one of the reasons is the ongoing earnings season. Investors are concerned about global economic growth because of the high energy prices, supply chain problems, and inflation pressure. That worries were outweighed by the better-than-expected earnings results of companies.

Is the current weakness in the USD short-lived? Could be! The Federal Reserve is going to start tapering already in November and raise rates in 2022. According to Crédit Agricole, the higher interest rates in the US can push the USD up as 1) it will reduce the USD liquidity and 2) increase demand for the dollar as its yields will increase.

*Earnings season is the period when companies uncover their financial results for the previous quarter.

If the forecast of Crédit Agricole is correct, we might expect USD/JPY to rally up to 115.00 and then higher and higher.

What about EUR/USD? The pair is likely to keep trending down. If it breaks the low of late September at 1.1570, it may fall to October trough at 1.1525 and then to the psychological mark of 1.1500.

EURUSDDaily (2).png

What does it mean for gold? The continuation of the downtrend as well. If it manages to break below the support zone of $1740-1750 at October lows and the 23.6% Fibonacci level, the doors to the September low at $1725 will be open.

XAUUSDDaily (1).png

LOG IN

Similar

How to Stay Calm and Trade on Uncertainties

Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!

Popular

Gold isn't saving investors from inflation

Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later