Dollar makes a comeback

0

The US dollar retracted against all currencies in the European and North American session. THe EUR/USD is back at about 1.44, the GBP/USD is at around 1.53 and the USD/JPY is above 89. Also other pairs, such as the USD/CAD have turned in favor of the greenback.

This comes after a fews days of beating for the dollar, that were mostly the result of the big drop in interest rates by the Federal Reserve. 0.25% left the dollar bulls helpless, and the bears came in.

Well, today, December 18th, there was a retraction. It began with the Unemployment Claims in the US, which were “only” 554,000. This was in line with expectations, but better than last week’s figure. This gave the dollar the initial boost.

The second boost came from the Philly Fed Manufacturing Index, that scored a drop of only 32.9 points, better than the drop of 40 points expected by analysts.

So, the bad economic data from the US which was somewhat better than expected, gave the dollar some needed air, after a few very hard days.

Reminder: BOJ statement at 00:00 GMT is supposed to hint an intervention to weaken the Yen. This may rock the Asian session.

Get the 5 most predictable currency pairs

About Author

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.

Comments are closed.