Talking Points:

- The US Dollar has traded up to fresh seven-week highs this morning, extending gains that started to show last week. As we move into a week that brings rate decisions out of both the European Central Bank and the Bank of Japan, the Greenback is threatening a deeper bullish move as the backdrop may be a bit more open for dovish tilts at both the ECB and BoJ.

- USD/JPY[1] has broken-out to fresh two-month highs, and EUR/USD[2] is testing a key area of confluent support as we open into this week. We look at both setups below, while also taking a look at NZD/USD[3] and GBP/USD[4] after each put in interesting moves last week.

- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[5]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[6]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[7].

Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[8].

US Dollar Rallies Up to Seven-Week Highs Ahead of ECB, BoJ

The US Dollar is higher on the morning, extending gains from last week after strength began to show[9] on Tuesday morning and continued through the Friday close. As we open a fresh week, DXY[10] is trading above a trend-line that’s held the highs for over a year, begging the question of whether we’ll see a

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