Didn’t you know it? The U.S. dollar is on top again, and other safe-haven currencies like the yen are seeing serious losses.
It appears the QE monetary policy has triggered a negative atmosphere. A situation is worse than earlier and, rather than riding the cheap central bank market, the markets are concerned. Here’s a look at the six currency pairs traders are concerned with:
- USD/CAD – when the week is eventful, it’s not usually a good thing for the Canadian dollar. Lower forecasts, the oil glut, and the minor inflation miss are weighing heavily on the Canadian dollar.
- EUR/USD – big falls are happening with these two currencies, and a big reason is the Draghi’s 5 blows that took place against the Euro. It ended the upward trend support and various support lines.
- AUD/USD – the Australian dollar got a boost from China’s rate cut, until the interpretation was altered and the pair began to slide to around 0.7248. The support awaits is around 0.72, and the resistance is around 0.7280.
- NZD/USD – these currencies were shocked into action by a drop in milk prices, but have an enjoyable Draghi show. It’s currently around 0.6780.
- USD/JPY – the biggest, most surprising move in currencies is the USD/JPY, rising to around 120.85. While the world appears dark, the yen tends to have some advantages. There’s an opportunity that the Bank of Japan is going to follow the path of easing. It may seem unlikely, but things change.
- GBP/USD – these two currencies are holding fairly well, lengthening the range to around 1.5380. Support is given at 1.5365, but still stays in the limited range. The BOE, however, may raise rates once the Fed does.