The dollar has been on a roll in recent months, breaking new ground against many currencies, as markets prepare for the eventual rate hike in the US, awaiting us sometime in 2015. But has the move gone too far? Here are 3 comments from 3 different continents that are quite different than what we’ve heard for a very long period of time. From the US: The Federal Reserve rarely says anything related to the value of the dollar. The Treasury used to say in the past that they have a “strong dollar policy” and it didn’t really convince anybody. But recently, the president of the New York Fed, Bill Dudley, referred to the exchange rate: :”If the dollar were to strengthen a lot, it would have consequences for growth”. He even continued and connected the dollar strength to monetary policy: “And if the dollar were to appreciate a lot, it would tend to dampen inflation. So it would make it harder to achieve our two objectives. So obviously we would take that into account”. From Japan: Just as USD/JPY crossed the very round number of 110, a Japanese official stepped up and talked about excessive movements in foreign exchange levels. Japan’s economy minister Amari said “Excessive currency movements undesirable”. The last we heard from them was when USD/JPY was at much lower levels. They needed a weaker yen to boost exports, but an extremely weak yen already hurts Japan via a rising price of energy imports, and that could already derail the recovery. From France: The president of Republic, FranÃ§ois Hollande, has been complaining for months and months about the strength of the euro and how it hurts the economy. Well, now we hear a different tune from Paris: Hollande says that the “euro is now at a more realistic level”. Is he comfortable with EUR/USD at 1.26? We will surely hear from him when the currency moves to different levels. We have finally seen a correction, that was the result of an accumulation of weak US data. However, the move didn’t go too far. While the greenback may look overbought at the moment, it doesn’t mean that the move is over. Perhaps the rally was just too fast, but the USD didn’t go too far. In other words: after a necessary correction, the greenback could still extend its gains. What do you think? More: US dollar index technical analysis Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next US factory orders fall 10.1% – but dollar looks strong Yohay Elam 7 years The dollar has been on a roll in recent months, breaking new ground against many currencies, as markets prepare for the eventual rate hike in the US, awaiting us sometime in 2015. But has the move gone too far? Here are 3 comments from 3 different continents that are quite different than what we've heard for a very long period of time. From the US: The Federal Reserve rarely says anything related to the value of the dollar. The Treasury used to say in the past that they have a "strong dollar policy" and it didn't really convince anybody. But… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.