The month end madness seems to have ended, and with it the dollar correction. The greenback is now rocking and rolling, making gains across the board, even though the timing of QE tapering remains uncertain.
This was also helped by a better than expected Chicago PMI, which surprised with a big comeback from 49 to 58.7 points. A score of 50.3 was expected. The US consumer sentiment was revised to the upside: from 83.7 to 84.5, above predictions of 84.1 points.
However, it is important to remember that the previous batch of US figures wasn’t that positive: personal spending, personal income and the Core PCE Price Index all fell short of predictions.
- USD/JPY has backed off the 100 line after arriving only 21 pips away. The yen is very sensitive to movements in the Nikkei index. Japanese stocks and USD/JPY are very correlated.
- EUR/USD is depressed under 1.30 once again, The pair has been battling with the line. The confirmation of weak inflation and rising unemployment weighed on the pair.
- AUD/USD is under 0.96 but still above the June 2012 low of 0.9580 it fell to earlier. The pair could extends its falls.
- GBP/USD is back under 1.52. The pound has been relatively resilient.
- The Canadian dollar didn’t enjoy the good GDP for too long, and NZD/USD is under the round 0.80 line.
The upcoming week is packed with top tier events: Non-Farm Payrolls and 3 rate decisions among other events. See the fresh forex weekly outlook for all the details.
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