Search ForexCrunch

The US dollar continues rallying for a second week in a row.  Last week it enjoyed positive housing data, a tick up in inflation and a lack of dovish statements from the Fed.

This week and especially today, it is rising without any trigger, with substantial moves in 3 currency pairs:

1) EUR/USD breaking another level of support at 1.0850

This happens after it made an attempt to move back up.

The lack of advance in Greek talks is also taking its toll.

EURUSD falling hard May 27 2015 euro dollar on the ropes USD domination

2) AUD/USD is slipping below 0.77

The Australian dollar did give a fight and enjoyed some kind of resilience thanks to the RBA’s lack of conviction to cut the rates again.

However, the weakness in China and  especially in commodity prices is taking its toll and the pair is at its lowest in over a month.

AUDUSD May 27 2015 technical view falling to new lows on USD strength

3) USD/JPY  at new 8 year highs

Dollar/yen is often stuck in ranges and then makes decisive moves. The recent one comes despite strong Japanese GDP numbers.

Nevertheless, when the breaks loose, there’s no stopping it.

USDJPY at new 8 year highs May 27 2015 dollar yen

4) Loonie honeymoon over

Towards the rate decision in Canada, which could actually be more upbeat, the retreat of the C$ from the highs continues.

USD/CAD  that already dipped below 1.20 several times, is now  closer to a totally different round number: 1.25.

USDCAD May 27 2015 rising towards next technical level as CAD falls

 

In our latest podcast, we discuss commodity currencies, oil hedging and preview next week’s events.

Subscribe to Market Movers on iTunes