Sumary of US Dollar Outlook: USD/JPY Mired by Yields, Flash PMIs Due:
- USD/JPY PRICE OUTLOOK: STRONG PMI DATA MIGHT STEER YIELDS &
- The broader US Dollar weakened as much as -0.3% at intraday lows, which seemed to track downward pressure on Treasury yields that followed disappointing weekly jobless claims data.
- The ECB decision weighed on the US Dollar too, albeit indirectly, with EUR/USD price action comprising 57.6% of DXY Index performance.
- DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (19 FEBRUARY TO 22 JULY 2021)Chart by @RichDvorakFX created using TradingViewBetter-than-expected US PMI data might see the Dollar firm up some more – particularly if both employment and inflation components show signs of strength.
- USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)It is worth noting that overnight implied volatility readings for the US Dollar look fairly muted.