Talking Points:
- This week marks the final week of Q2 and the first half of 2018, and this brings the potential of Quarter-End flows across global markets. We’ve seen some rather robust trends develop in Q2, key of which has been a re-emergence of US Dollar strength after EUR/USD[1] embarked on a notable down-trend in April that ran through May/June.
- The big question as we move into Q3 and the second-half of the year is whether that trend of Euro[2] weakness and US Dollar strength might continue. Also of relevance is a build of pressure in the equity space after the hawkish FOMC[3] rate decision a couple of weeks ago.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
US Dollar Pullback Continues as EUR/USD Recovers into Key Resistance
The US Dollar pullback that started last Thursday[10] has continued into this week’s open. This is the final week of Q2, and this type of backdrop can often lend itself to profit taking from strong trends as we look to wind down the quarter. Making matters a bit more interesting is the fact that we get
