US Dollar Winning Streak Extends To Five Days

US DOLLAR AT FRESH 2018 HIGH, AGAIN

The US Dollar (via DXY Index) is extending its winning streak to five consecutive days, seeking to close out each day this week positive. Even with US Treasury yields taking a step backwards this morning, the DXY Index has been able to push to a fresh 2018 high again this week, moving up to its greatest elevation since December 18, 2017.

Two pieces of news stick out from the overnight that may be contributing to the shape of price action this morning. First, the Chinese government denied reports that it would introduce efforts to reduce the US' trade deficit by $200 billion. While this seemed outlandish from the get-go, perhaps it is a sign that the conversation is progressing towards resolution - which serves to the US Dollar's benefit.

The second item of news on Friday has been the completion of a joint political program by Lega and the Five Star Movement, which effectively outlines the policies that the two populist parties want to strive to achieve. With Italian yields creeping up and credit default swap spreads widening out, it's safe to say that political risk is emerging once again for the Eurozone - which servers to the Euro's detriment.

Finally, April Canadian CPI and Retail Sales figures this morning came out on the disappointing side, with the former missing expectations and the latter posting mixed results. The Canadian Dollar, which had been rallying versus its non-USD peers this week, has fallen back after the dual data reports were released.

See the above video for technical considerations in EUR/USD, USD/JPY, CAD/JPYGBP/USD, and Gold.

Disclosure: DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the ...

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