9 May 2025,05:34
Daily Market Analysis
9 May 2025, 05:34
Key Takeaways:
*Dollar supported by Fed-BoE policy divergence
*Risk sentiment improves on trade progress
Market Summary:
The Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, extended its rebound on Thursday, buoyed by a hawkish Federal Reserve and easing global trade tensions. The index gained after breaking above key resistance at 100.25, reflecting continued investor preference for the U.S. dollar amid a widening yield differential.
The Federal Reserve’s decision to hold interest rates steady — diverging from the Bank of England’s recent 25 basis point rate cut — reinforced the dollar’s relative appeal. Traders are increasingly positioning for a “higher-for-longer” scenario in U.S. monetary policy, further underpinned by resilient U.S. economic data.
Meanwhile, risk sentiment improved globally as U.S. President Donald Trump announced a limited trade agreement with the UK and hinted at potential progress in upcoming U.S.-China trade talks, scheduled in Switzerland over the weekend. The developments eased geopolitical tension, though traders remain cautious ahead of concrete outcomes.
Technical Outlook (Dollar_Index):
The Dollar Index is trading higher following a successful breakout above the previous resistance level of 100.25. The price remains well-supported above the Short MA (yellow), suggesting continued bullish bias.
However, technical indicators present a mixed picture — MACD is showing signs of diminishing bullish momentum, while RSI is hovering around 76, entering overbought territory.
A sustained move above 100.25 may open the door for further gains toward the next resistance at 101.35. On the flip side, any failure to maintain above this level may trigger a pullback toward the MA zone.
Resistance levels: 101.35, 102.65
Support levels: 100.25, 99.70
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
