November 15-19, 2021. Dollar weakening factors

2021-11-14

Statistics released last week showed a significant increase in profits in all sectors compared to last year for companies from the S & P500 list. Such statistics can become an incentive for the movement of capital from traditional protective instruments – American Treasuries, to the stock market. This migration is a powerful factor in the weakening of the dollar next week. The low Fed rate and high inflation are forcing investors to invest in risky assets around the world, reducing the demand for the American currency. This is indirectly confirmed by technical analysis for a number of currency pairs, for example EURUSD. By the end of last week, there was a significant oversold on it, which reached the lower boundary of the 1.1430 channel on the D1 timeframe. Therefore, the dollar exchange rate is likely to decline over the next week, working out the scenario of fluctuations within the channel. By the end of the week EURUSD should rise to 1.1530, or even 1.1550.