Is a rebound in the U.S. dollar likely?

Is a rebound in the U.S. dollar likely?

22.11.2021

Last weekend, two of the three major U.S. stock indices fell, creating a risk-off sentiment characterized by falling stock prices, lower interest rates, and declining crude oil prices. The VIX (fear index) rose by about 1.8% to around 17.9.Canada’s September retail sales figures, released last Friday, came in at -0.2%, outperforming the forecast of -1.0% and avoiding a decline as severe as the market had anticipated.

The foreign exchange market got off to a calm start with no notable gaps. Although the Dollar Index remains at a high level of 96.0, the U.S. dollar faces resistance on the upside, and the EUR/USD pair remains near its lows after a slight rebound.The EUR/USD pair is currently trading around 1.126. Since it remains below the 20-period moving average on the 4-hour chart, we need to assess whether the downtrend will continue.

Today, the Turkish Consumer Confidence Index is scheduled for 16:00, the U.S. Chicago Fed National Activity Index for 22:30, U.S. Existing Home Sales for 24:00, the U.S. 2-Year Treasury Auction for 25:30, andand the U.S. 5-year Treasury auction at 27:00. This week, the U.S. Manufacturing and Services PMI will be released on Tuesday, the 23rd; the RBNZ policy rate and statement will be announced on Wednesday, the 24th; the minutes of the November FOMC meeting will be released;on Thursday, the 25th, the release of the minutes from the ECB’s October Governing Council meeting, and on Friday, the 26th, remarks by ECB President Lagarde. We will be closely monitoring price movements in the first half of the week to see which direction they take.