The USDollar broke the floor of a multi-week congestion pattern this past week, hinting at a correction from its three-year high. Yet, does the S&P 500’s dramatic decline Friday alter the FX market’s bearings?
US Dollar or S&P 500 – One Will Fall From Grace
Friday closed out the best month for the Dow Jones FXCM Dollar Index (ticker = USDollar) in a year. Yet, we have seen some vulnerability to the benchmark just this past week as traders size the currency up to the persistent appetite for yield and the dubious time frame for the Fed’s eventual curb on its expansive QE3 stimulus program.
Japanese Yen to Consolidate Further Ahead of Next BoJ Meeting
The Japanese Yen gained ground against its U.S. counterpart even as the Bank of Japan (BoJ) pledged to increase the frequency of its Japanese Government Bond (JGB) purchases, but the pullback in the USDJPY is likely to be short-lived as the central bank carries its easing cycle into the second-half of the year.
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DailyFXprovides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx
