The US dollar index is trading at almost 6-month peak at 81.20 and is some pips away from 1-year fresh high. Market participants seem optimistic about the US reports outcome by end of the week when the Non-Farm Payrolls would be released. Moreover, it’s widely expected that today the Fed would reduce asset purchases to $25 billion. The US economy is expected to show a rebound for the second quarter, the growth in 2Q is projected to stand at 3.1% up from previous revised quarter of -2.9%.
Elsewhere, the Euro against the US dollar declined to 1.3400 and is now consolidating around that level with investors expecting the releases. Today regarding Euro-zone Germany would release CPI data where the yoy figure is forecasted to stand at 0.8%. The EURUSD has been declining in the medium term and we would expect the prevailing trend to continue lower.
That week belongs to the US dollar, the major currency pairs would depend on the US reports. In the recent trading the US dollar has been strengthening across the board. Against the greenback the biggest losers have been the Aussie, the Kiwi and the Loonie. The Aussie dropped as low as $0.9366 and is heading towards support at $0.9328. The NZDUSD continues its downtrend from previous week drawing earlier today support at 0.8493. The USDCAD breached downtrend line and went up to 1.0864.
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