US Dollar Talking Points:
- Q4 has started off in a trending fashion as the moves that showed prominently to end Q3 have largely remained[1]. EUR/USD[2] pushed down to a fresh six-week low and the US Dollar[3] has driven right back to June resistance around the 95.53 level. This theme in both markets appears to be driven by dynamics around Italian politics along with a potential debt stand-off, and Italian bond yields have been rising of recent to incorporate this additional risk. This has driven the Euro[4] lower, very similar to what was seen in the month of May. During that run – sellers took a step back from the ledge as calm developed in June.
- While a bit of risk aversion continues to show in some currencies such as the Euro, US Dollar or British Pound[5]; other markets are showing very different themes. Both US and Japanese equities remain strong while trading near key high watermarks: The Nikkei is trading at fresh 27-year highs after last month’s bullish breakout while the S&P 500[6] caught a bounce from confluent support yesterday to re-approach those all-time-highs set just a couple of weeks ago.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[7] or the Euro[8] are available from the DailyFX Trading Guides page[9]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[10]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[11].
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