- It’s been a big week for the US Dollar and with a loaded calendar next week looks to be the same. USD has gained 3.1% in the past ten days, and this looks to be at least partially-driven by a short-squeeze scenario as rate hike bets get priced further-out in Europe and the UK.
- EUR/USD and GBP/USD have both underwent significant reversals, and are fast approaching support levels of interest. Commodity currencies have been especially friendly to USD-bulls. Next week brings PCE to get a bit of additional inflation data, FOMC is on Wednesday and next week finishes with a bang with the release of April Non-Farm Payroll numbers.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator.
Dollar Strength Continues to Fresh Three-Month Highs
This has been a big week for the US Dollar. After spending most of the past year trending-lower, including a strong bearish drive that continued through January, there weren’t many positive theses for USD-strength. The fact that the down-trend wiped out as much as 15% of the Greenback’s value while the Federal Reserve was one of the only major Central Banks raising rates just