Safe haven demand boosted the dollar on Friday after terrorist bombings in Jakarta, Indonesia. Data on US housing starts and building permits were better than anticipated. The S&P 500 fell 0.36 points to 940.38, but US stocks rose about 7% for the week. The dollar and yen declined on better risk appetite while the European and commodity currencies advanced for the week.
The dollar index rose modestly on Friday but fell for the week. Unable to break the resistance at the 81 handle last week, the index was pressured this week by better-than-expected US corporate earnings and improving global economic data, particularly strong Chinese economic growth. The dollar index has been trading inversely with the stock market and risk appetite. The index reached a peak in the beginning of March, which coincided with the US stock market's low. The index then traded sharply lower as stocks rallied. During June's stock-market consolidation, the dollar index moved sideways. If the US stocks measured by S&P 500 can penetrate the resistance from the early-June high in the 950 area, the dollar index will break the 78-area support and likely drop significantly.
This may rally the stock again but the 9,000 needs to give way...
GJ may follow the DJ if this rally break thru the 9,000 level on the DJ daily chart..
If the dollar index reverse at the 80 level than the DJ will drop with GJ....
Dollar index is inversely to the DJ market
The DJ broke the overall TL for a bullish upward PA..
The dollar index rose modestly on Friday but fell for the week. Unable to break the resistance at the 81 handle last week, the index was pressured this week by better-than-expected US corporate earnings and improving global economic data, particularly strong Chinese economic growth. The dollar index has been trading inversely with the stock market and risk appetite. The index reached a peak in the beginning of March, which coincided with the US stock market's low. The index then traded sharply lower as stocks rallied. During June's stock-market consolidation, the dollar index moved sideways. If the US stocks measured by S&P 500 can penetrate the resistance from the early-June high in the 950 area, the dollar index will break the 78-area support and likely drop significantly.
This may rally the stock again but the 9,000 needs to give way...
GJ may follow the DJ if this rally break thru the 9,000 level on the DJ daily chart..
If the dollar index reverse at the 80 level than the DJ will drop with GJ....
Dollar index is inversely to the DJ market
The DJ broke the overall TL for a bullish upward PA..
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