The US dollar is marching forward and not waiting for the big bulk of top tier data. On no specific background, the greenback is making significant advances.
Has the post-Bernanke correction ended?
- USD/JPY made a convincing break above 100. After getting close to the line a few times, it made a clear break with strong momentum and already reached 100.30. This was helped by another rise in the Japanese stock market, following good figures early in the week.
- EUR/USD is hardly holding on to 1.30, trading at 1.3003 at the time of writing. The pair already dipped without a big follow through last week. Is it ready for a real break now? Update: 1.30 is gone. The good Spanish employment numbers didn’t help.
- GBP/USD is trading on the low end of the range, at 1.5143. This comes despite a better than expected manufacturing PMI and an OK construction PMI. Mark Carney could provide a statement and reveal his intentions.
- AUD/USD is testing the lows at 0.9140. The Aussie was hit by dovish RBA statement early in the day. The central bank wants an even weaker Aussie, as it helps the economy.
- USD/CAD is at levels last seen in October-November 2011. This is a 20 month high. After Canadians enjoyed Canada Day on July 1st, they are back and their currency is falling. USD/CAD is at 1.0560, after staying under 1.05 earlier in the week. Job figures are in the limelight later in the week.
What’s next? Here are articles of interest:
- 5 Most Predictable Currency Pairs – Q3 2013
- EUR/USD Could Reach 1.2750 – Elliott Wave Analysis
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