The dollar dilemma

12 March, 2015

We are entering the European session with the dollar under pressure, but that comes after what has been a relentless rise so far this month and especially so against the single currency. We’ve marked a 1.0495 low on EURUSD in overnight trading and as we highlighted yesterday, the risks of some sort of rebound were growing given the price action seen over recent days. The dynamics underlying the single currency have been done to death, but the question for markets is how far they can still run. Furthermore, the relentless rise of the dollar also poses a dilemma for the Fed in terms of its desire to raise rates around mid-year as it bears down on inflation and impinges on the ability of exporters to remain competitive. This could be a factor worth keeping a keen eye on over the coming few months.

For today, the pace of the dollar reversal suggests that more corrective activity could be in store. We’re seeing cable close back to the 1.50, from the low just below the 1.49 level. We’re also seeing the same on AUDUSD, with USDJPY close to 121.00, from a recent high of 122.03. Overnight, we’ve seen tine New Zealand central bank keep rates on hold at 3.50%, as broadly expected. Together with the weaker dollar tone, this has supported the recovery back to the 0.74 level.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has gained 0.6% and reached $6519.81436671. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.9032% and is now at $1.1467. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -1.94% and is now at $205.44486509. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: