The dollar index continues to rise in the market at the beginning of the week. China’s unexpected lowering of its one-year MLF has fueled dollar buying and yuan depreciation. In addition, lower-than-expected Chinese retail sales, industrial production and real estate investment in July, all of which were announced on the same day, contributed to the risk-averse dollar’s strength. In addition, US lawmakers’ visits to Taiwan have once again caused tensions in US-China relations.
The dollar index temporarily dropped to 105.552 in the morning of Tokyo, but has since risen. At the beginning of London, it climbed to 106.341 when put on 106 units. The daily chart is clearly above the 10-day line (106.007) and has reached the level of the 21-day line (106.317).
We were thinking of selling after tomorrow’s Canadian CPI, but the situation is that the CAD has already weakened. If the USDCAD returns well, we plan to buy and attack.
