US dollar bulls are feeling more confident after quite a few rounds of sell-offs. After the positive existing home sales and ahead of the more important durable goods orders release, traders in Asia piled up on USD.
EUR/USD dropped below support at 1.1290 and reached 1.1240, GBP/USD, that looked very resilient, lost the 1.58 level, and USD/JPY advances to 123.70.
The latest from Greece is optimism towards a deal. The new Greek proposal was received positively and is seen as a basis for a breakthrough and possibly a final deal on Wednesday. Yet this didn’t aid the common currency.
Update: French PMIs came out much better than expected at 50.5 for manufacturing and 54.1 for services. Nevertheless, this doesn’t really help the euro.
The British pound has been one of the stronger currencies of late and it’s hard to find a reason to sell it, apart from the usual profit taking.
For the Aussie, China’s HSBC Flash Manufacturing PMI came out at 49.6, slightly better than expected. This helps mitigate the dollar storm and AUD/USD is indeed recovering.
Here is the EUR/USD chart:
In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.
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