The US dollar index rose for the third consecutive day in the forex market May become the strongest weekly performance trend in over a decade

The US dollar index rose for the third consecutive day in the forex market

May become the strongest weekly performance trend in over a decade

The US dollar index has risen for the third consecutive day in the forex market, potentially becoming the strongest weekly performance in over a decade. Due to the strong US economy, more and more people expect policy interest rates to remain high. This expectation of higher interest rates has led to an influx of funds into the United States. Investors demand higher interest rates than in Europe and Asia, putting upward pressure on the US dollar.

On Thursday, the US dollar remained strong, causing significant pressure on gold. Gold prices encountered resistance and retreated, posing a risk of further downward trend in the short term. Therefore, it is recommended that investors adopt a volatile and bearish approach, with upward pressure focused on $1930 per ounce and downward support focused on $1915 per ounce. In terms of news, the US economic data released last week showed strong performance, supporting the strengthening of the US dollar once again. On Tuesday, Federal Reserve Governor Waller spoke, believing that policymakers can act cautiously to raise interest rates. On Wednesday, the US August ISM non manufacturing sector recorded 54.5, which was better than market expectations of 52.5. This led to an increase in the Federal Reserve's November rate hike expectation, driving the US dollar to continue to rise and suppressing gold prices.