The Other Dollar Index

By Ashraf LaidiForexJan 28, 2022 12:47PM ET

www.investing.com/analysis/the-other-dollar-index-200616329

The Other Dollar Index

By Ashraf Laidi | Jan 28, 2022 12:47PM ET

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Just as you become more certain the US dollar will go nowhere but up, you stumble into this analysis, suggesting other ideas. No, this is not a piece explaining the Fed's inability to deliver the four or five rate hikes that are priced in, nor it's about other central banks having to join the Fed. Ok, maybe both of those are true...

While most USD charts (DXY, Fed, and Bloomberg's USD indices) show robust upside ahead, the Asian Dollar Index (below) highlights ongoing support in Asian currencies (or USD facing resistance vs. Asian FX). Unlike DXY and FRB's index, the ADXY is not skewed by ultra dovish monetary policies of the Eurozone or Switzerland.

ADXY And XAU/USD Daily Charts

I bring this up now due to the Asian index's (ADXY) ability to proxy a crucial trading bloc with more weighting in the Chinese yuan. The ADXY even helped me clarify how/why the US dollar was gaining in the past simultaneously alongside gold.

We could well see gold extend to $1770 or $1760 next week and ADXY extending weakness to 107.00, but traders ought to remember the difference between closing and intraday lows. Add to this that demand/supply inflationary forces may likely overwhelm timid rate hikes from the Fed (especially when Fed plans to let assets roll off rather than selling them), and gold will have more breathing room than in the tightening cycles of 2015 or 2018. Stay tuned.

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Swiss banks are traditionally known for avoiding publicity, and the same can be said for the Swiss franc, which is usually fairly steady and doesn’t make the headlines. Earlier...

EUR/USD: Market Will Likely Reach April 21 High By Al Brooks - May 25, 2022

– The market is testing the 2020 lows and the May 5 breakout point. Bulls will try hard to get the market to reverse back up again. – So far, the bears have reversed yesterday’s...

GBP/JPY: Big Opportunity Ahead If It Can Break Support By Scott Barkley - May 25, 2022

BearishAt time of writing, GBP/JPY is trading at 158.61 within a channel. Should the pair break support at 158.06, we are looking for a continuation to the ATR target of 156.67,...

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Central Banks

Interest Rates

Next Meeting

FED

1.00%

Jun 15, 2022

ECB

0.00%

Jun 09, 2022

BOE

1.00%

Jun 16, 2022

SNB

-0.75%

Jun 16, 2022

RBA

0.35%

Jun 07, 2022

BOC

1.00%

Jun 01, 2022

RBNZ

2.00%

May 25, 2022

BOJ

-0.10%

Jun 17, 2022

CBR

14.00%

Jun 10, 2022

RBI

4.00%

Jun 08, 2022

PBOC

3.70%

BCB

12.75%

Jun 15, 2022

US 30	32,125.3	+5.0	+0.02%
US 500	3,976.0	-2.7	-0.07%
Dow Jones	32,120.28	+191.66	+0.60%
S&P 500	3,978.73	+37.25	+0.95%
Nasdaq	11,434.74	+170.29	+1.51%
S&P 500 VIX	28.37	-1.08	-3.67%
Dollar Index	102.130	+0.260	+0.26%

Crude Oil WTI	110.89	+0.56	+0.51%
Brent Oil	111.48	+0.01	+0.01%
Natural Gas	9.046	+0.062	+0.69%
Gold	1,852.30	+6.00	+0.32%
Silver	21.983	+0.113	+0.52%
Copper	4.2745	+0.0053	+0.12%
US Soybeans	1,679.50	-13.50	-0.80%

SPDR S&P 500	397.37	+3.48	+0.88%
iShares Russell 2000	178.73	+3.16	+1.80%
Invesco QQQ Trust	291.26	+4.02	+1.40%
Direxion Daily Junior Gold Miners Bull 2X Shares	53.34	-0.99	-1.82%
iShares Silver	20.34	-0.05	-0.25%
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ProShares UltraPro QQQ	27.98	+1.08	+4.01%

Apple	140.52	+0.16	+0.11%
Alphabet A	2,116.10	-3.30	-0.16%
Tesla	658.80	+30.64	+4.88%
Amazon.com	2,135.50	+53.50	+2.57%
Netflix	187.83	+7.49	+4.15%
Meta Platforms	183.83	+2.55	+1.41%
Bank of America	35.84	+0.19	+0.53%

The Other Dollar Index

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