The end of the world as we know it, but the USD feels fine

Let’s be reminded that the USD is the king of currencies when it comes to a big crisis. In the ‘sell everything’ landscape the USD is being held as the most liquid currency. With 70% of all currency transactions involving the USD it is little wonder that the USD is attracting more and more bids. And yesterday the USD was bid with a vengeance.

A look at the DXY

The Dollar Index is showing it all. The current monthly candle is engulfing around 14 previous months of dollar action putting in a strong potential bullish Engulfing bar on the monthly chart. For those who like to position trade there is an excellent option here to buy the DXY and come back next month. That will give you plenty of time to plan how you will survive the coming isolation as we try to ride out the coronavirus storm.

HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.