Historic US Dollar Run Sounds ‘Overbought’
Greenback is on pace for a record streak of weekly gains!
Currency retreats on Friday, halting three-day advance
Tweet on USD market fluctuation
The greenback is on pace for a record streak of weekly gains.
Currency retreats on Friday, halting three-day advance#USDC #dollar #currrency #market pic.twitter.com/q0qXVScLMA— The_Journalbiz (@the_journalbiz) September 8, 2023
Bloomberg chart on USD dollar
The dollar lost traction, following a seemingly unstoppable rally that pushed the currency toward a record streak of weekly gains on bets the Federal Reserve will keep rates elevated. Stocks edged higher.
- Dollar Spot Index was on pace for its eighth straight-up week — the longest such run since 2005.
A respite in the greenback’s surge reduced the pressure on commodities.
The S&P 500 saw a small gain after a three-day drop. Apple Inc. rebounded from a two-day rout that erased $190 billion in value just a few days before the unveiling of the iPhone 15, new smartwatches, and the latest AirPods. Bonds fluctuated.
“The dollar has become quite overbought and overloved,” said Matt Maley, chief market strategist at Miller Tabak + Co.
Short-term traders should be careful about long positions in the dollar.”
The greenback’s 14-day Relative Strength Index is currently above 70, which is seen by many traders as one indication of an overbought market.
@thejournalbiz
Source:WSJ/Factset
Image: Dollar
