The USD continues to distance itself from Friday’s 3-year lows of 88.25 seen on the US Dollar index (DXY), an index which measures the strength of the USD against a basket of currencies. So far it seems we are entering a 3rd consecutive day of recovery and currently trading at 89.35.
Have the concerns currently surrounding the perfomance of the USD now faded? So far not, looking back rising US interest rates have caused worries about the outcome to the economy and as the first-mover advanatage that the Fed had quickly got eroded (as other major central banks slowly catch up) we are bound to see less high days for the USD.
In addition a large trade deficit and a large budget deficit will likely also continue to drag USD lower so far.
EURUSD is currently trading at 1.2388 after opening around 1.24 levels, Realtimeforex.xom’s tradertip sees the possibility of a small bouunce to 1.2421:1.2438 region before a correction kicks in for the day.
Later today we have German and EZ Zew survey and EZ consumer confidence amongst others.
