The US dollar certainly enjoys the adjustments made towards the end of the week, month and quarter. The late Friday sessions are always choppier as traders scramble to close positions, and this one is even stronger, as also we turn the page also on the month, quarter and the half if you wish.
The upwards revision of consumer confidence also contributed, but what we are seeing is mostly a renewal of the tapering move. The action isn’t over yet.
While the dramatic talk about tapering QE on June 19th certainly gave the dollar a boost, the former part of the month wasn’t that great: the dollar was on the back foot. After some consolidation of the big Bernanke move, the US dollar is now marching forward.
- EUR/USD is back down towards 1.30 after getting very close to 1.30.
- USD/JPY is holding to 99. The pair enjoyed the rises in the Japanese stock market.
- GBP/USD dipped below 1.52. The pound is still suffering from a significant GDP revision for the year-on-year figure.
- AUD/USD fell to a new multi-year low, renewing the general bearishness. The Aussie certainly has reasons to go down under.
- USD/CAD was already falling on continued Canadian growth, but it is now battling 1.05 once again.
- NZD/USD is below 0.77, close to the lows.
The next week is a very busy one, top tier US figures that all serve as a build up to the Non-Farm Payrolls. See the updated weekly forex forecast for all the details.