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After some correction earlier in the day, the US dollar resumed its rise during the US session.

The yen and the Aussie are seeing new lows against the greenback, but they are not alone. Each currency has its own specific issues, apart from the dollar strength. Here is a quick overview of USD/JPY, EUR/USD, GBP/USD and AUD/USD”

  • USD/JPY broke to new multi-year highs and is now touching 102.40. There is new talk about a fresh round of “Abenomics” to be introduced on Friday.
  • EUR/USD retreated from 1.30 once again, and lost the weak support line of 1.2960. At 1.2934, it still has room to reach the 1.2880 support line. The worse than expected ZEW figure weighs, although industrial output exceeded expectations.
  • GBP/USD, that was hit by talks about a “Brixit” is now finding support at the round number of 1.52. It managed to make a temporary recovery above 1.53 before falling.
  • AUD/USD was hit by the release of the Australian budget and is now more than 100 pips away from the parity line. The government changed its forecasts and now sees a significant deficit in the next few years, instead of a small surplus.

The thoughts that the Federal reserve will taper the QE program continues to fascinate markets. The US recovery is now supported not only by the US Federal Reserve, but also by the Japanese BOJ. The extreme monetary policies could create a positive feedback loop for the No. 1 and No. 3 economies of the world.

Where will the next move come from? Perhaps from the big bulk of US data on Thursday.

More: See how to trade the US  Philadelphia Fed Manufacturing Index with USD/JPY.