Dollar on a roll: breaks against all currencies


The dollar is making strong moves across the board, breaking monthly records and multi-month records against various currencies.

Are the markets gearing for a hawkish tone in the FOMC Meeting Minutes? Are they expecting he usually dovish Yellen to express a hawkish tone in Jackson Hole? Are yesterday’s strong housing numbers still having such a strong impact? In any case the moves are significant:

  • EUR/USD that already broke lower yesterday, touched the 1.33 line. While this is a round number, real support awaits at 1.3295, the November 2013 low. So, we have a new 9 month low for the euro.
  • GBP/USD extended the falls following the inflation numbers and touched the round 1.66 line. The MPC Meeting Minutes are eyed.
  • USD/JPY broke above 103 amd at 103.15, it is trading in the highest level since April. The losses of the yen rule out a “safe haven” move.
  • USD/CAD is on the rise at 1.0945, erasing the drops that followed the corrected jobs report. The fall in oil prices doesn’t help.
  • AUD/USD is below 0.93 once again. This followed a dovish statement by RBA governor Glenn Stevens. It is important to note that the Aussie stands out with relative resilience.
  • NZD/USD dropped under 0.84 following weakness in milk prices, and is now at the lowest since March.

More: How to Anticipate Trends

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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.

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