Gold 1887,10
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EURUSD 1,2164
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DJIA 34731,50
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OIL.WTI 69,365
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DAX 15695,50
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The US unemployment figures for May were published on Friday. It was slightly worse than analysts’ expectations. However, not as nightmarish as in the previous month. But even that was enough for the US dollar to start falling against all currencies.
DXY
The chart above shows the dollar index (DXY). From a technical point of view, nothing serious has happened yet. Only the short-term uptrend has stopped. On the fundamental side, however, all is not so good. The big investors realise that such unemployment figures prevent the Fed from even talking about stopping the printing press.
This means that inflation growth in the USA will at least not decrease but rather accelerate further in the coming months. Recall that so far it is industrial goods and raw materials which are rising the most. Only with a lag of a few months will it have an effect on consumer goods. For example new cars, computers, everyday consumer goods.
It’s only fair that everyone wants to protect their money from inflation. There aren’t many options left. If you want to invest your depreciating dollars in real estate, it is already too late. It is already appreciating at a record pace.
Investors and traders are looking at more stable currencies, as well as the comodities, which have not had time to increase in value much. A great option is to buy the yellow metal, which actually becomes an alternative to fiat currencies.
But the real question about the future of the American dollar will be if the Dollar index breaks through 89. The chart will open an abyss, which can fall into for a very long time, without seeing any support.
What can stop this process? Apart from good labour market data, which we may see in the coming months, it is worth keeping in mind the seasonal factor. Summer and a couple of holidays are starting. This could reduce the amplitude of the fluctuations in the markets, putting them in a flat.
08.00 German factory orders for April
08.30 Swiss consumer price index for May
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