The US dollar is retreating against most currencies in a wave of correction after the big rally. This was expected, even though the better than expected US retail sales curbed some of the correction.
How low will the dollar go before it resumes the rally?
- EUR/USD managed to climb above 1.30, but it finds it hard to really go any further. The euro is awaiting the German ZEW indicator and the German GDP figure tomorrow.
- USD/JPY dropped from around 102 to the previous resistance line of 101.44 (the April 2009 low). The surprising rise in Japanese yields weighs on the yen.
- AUD/USD temporarily climbed above parity after digging to deeper lows. The Australian government will present its budget later on.
- GBP/USD managed to reconquer 1.53 after losing it yesterday on stronger talk about a referendum for an EU exit (“Brixit”). The talk remains intense, but the pound is enjoying the general dollar selling at the moment.
Further reading: EUR/USD Stalls Decline around 200-Day Moving Average
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