Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Eases On Solid U.S. Earnings

By MarketPulse (Jeffrey Halley)ForexJul 22, 2021 04:40AM ET
Dollar Eases On Solid U.S. Earnings
By MarketPulse (Jeffrey Halley)   |  Jul 22, 2021 04:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Long-covering pushes US dollar lower

The US dollar gave back some of its recent gains overnight, as Delta-variant nerves eased on the back of strong US corporate earnings. That saw a reduction in haven flows, pushing US bond yields slightly higher and causing some US dollar outflows. The dollar index fell 0.20% to 92.77, where it remained in Asia in subdued regional trading.

In the bigger picture, the US dollar continues to hold onto most of its recent multi-week gains, and a dovish ECB later today could lift the dollar index once again. Having said that, with Delta complacency rising as the week has gone on, the US dollar could just as easily drift lower into Friday with no real data to change the narrative this week. A break of 92.50 by the dollar index likely signals more US dollar weakness into the week’s end and early next week.

As outlined above, EUR/USD’s fate will be decided by the ECB this afternoon and should be good for 150 points either way from its present level at 1.1800. Sterling’s price action also turned constructive, with GBP/USD rallying impressively 0.65% to 1.3715 overnight, recapturing its 200-day moving average (DMA) at 1.3703. Although the driver of the rally is elusive to me, I do respect the price action. The technical picture suggests now that a rally through 1.3730 could extend quickly to 1.3800.

AUD/USD and NZD/USD both recovered with risk appetite in general overnight, as did regional Asian currencies. However, both Australasians and regional Asia FX remain vulnerable to another swing south in risk sentiment in what has been a schizophrenic week. The IDR, MYR and THB remained heavy, and I considered them the most vulnerable to further COVID-induced sell-offs. A surprise cut by Bank of Indonesia today could send USD/IDR sharply higher.

Original Post

Dollar Eases On Solid U.S. Earnings

Related Articles

Blake Morrow
Chart Of The Day: EEM Versus USD/MXN By Blake Morrow - Jul 29, 2021

The iShares MSCI Emerging Markets ETF (NYSE:EEM) versus USD/MXN is still one of my favorite correlations in the markets. Today, the EEM has bounced back to the 38% retracement and...

Kenny Fisher
CAD Improves As U.S. GDP Underperforms By Kenny Fisher - Jul 29, 2021

The Canadian dollar has extended its rally on Thursday. USD/CAD has declined by 0.76% this week and is back below the symbolic 1.25 line. U.S. GDP Misses Forecast U.S. data was a...

Dollar Eases On Solid U.S. Earnings

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email