{"id":93002,"date":"2016-07-17T12:32:12","date_gmt":"2016-07-17T16:32:12","guid":{"rendered":"http:\/\/countingpips.com\/?p=93002"},"modified":"2016-07-17T09:33:03","modified_gmt":"2016-07-17T13:33:03","slug":"dollar-jumps-boosted-by-strong-economic-data-from-the-u-s","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/07\/dollar-jumps-boosted-by-strong-economic-data-from-the-u-s\/","title":{"rendered":"Dollar jumps boosted by strong economic data from the U.S"},"content":{"rendered":"
July 17, 2016<\/div>
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Article by ForexTime<\/a><\/p>\n

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We have seen a significant increase in volatility by the end of this week as traders were waiting for several economic releases across the global but the focus was mainly on the U.S inflation figures along with retail sales data.<\/p>\n

Beginning from Europe, both the CPI MoM and YoY remain unchanged in the Eurozone at 0.2% and 0.1% respectively, while in the U.K, May construction output deficit increased by -2.1% compared to -1.2% expected.<\/p>\n

In Canada, Manufacturing sales retread by -1.0% in May, in the meantime, the existing home sales recovered by -0.9% in June up from -2.8% previously.<\/p>\n

Looking at the U.S figures, June retail sales exceeded analyst\u2019s estimates, and jumped to 0.6% while it has been anticipated at 0.1% only. In addition, the core retail sales rose by 0.7% against 0.4% expected.<\/p>\n

In the opposite, we have seen a slowdown in inflation during the previous month as both the CPI MoM and YoY missed expectations and registered 0.2% and 1.0% against estimates of 0.3% and 1.1% respectively.<\/p>\n

Finally, the Industrial production, capacity utilization and the Manufacturing production came out better than expected, which pushed the Greenback higher immediately after the release of these figures.<\/p>\n

Now let us have a look at the recent price action in the U.S Dollar from a technical standpoint.<\/p>\n

After several attempts to break above 96.70 weekly resistance, the U.S Dollar traded sideways for two weeks as traders were waiting for a catalyst to drive their investments, especially following the U.K Brexit decision, which brought uncertainty back to the table.<\/p>\n

However, and from a pure technical view, the Dollar index may remain well supported above 95.90\/75 zone and another wave higher is likely towards the weekly resistance of 97.10, therefore traders should keep in mind that the index is about to confirm a bullish reversal in the daily chart and only a daily close below 95.00 zone should cancel this scenario.<\/p>\n

Meanwhile, a clear break above 96.70 resistance is needed during next week to open the path for as high as 97.10 area in the coming sessions.<\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime We have seen a significant increase in volatility by the end of this week as traders were waiting for several economic releases across the global but the focus was mainly on the U.S inflation figures along with retail sales data. Beginning from Europe, both the CPI MoM and YoY remain unchanged in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-93002","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=93002"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93002\/revisions"}],"predecessor-version":[{"id":93017,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/93002\/revisions\/93017"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=93002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=93002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=93002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}