The US dollar is broadly stronger in today’s trading with the US dollar index breaching previous cap at 84.77 and heading now to the next longer term resistance at 88.36, it was lastly seen at 85.22. Investors’ expectations build toward an earlier rate hike than expected. For today we expect some major news for the greenback, first we will focus on US Durable Goods orders and on the US Jobless Claims.
Elsewhere, the British pound has been also declining against the greenback returning to previous Thursday’s level at 1.6276. The sterling has been stronger after the No vote for independency but was unable to recover strongly due to weak fundamental data indicating that the BOE would be far away in terms of time of a rate hike. The BOE Governor, Mark Carney would speak today and could give its view over the UK economy, thus we would watch it closely.
The US dollar against the Japanese Yen returned to previous peak at 109.40 and its now threatening to rise to fresh 6-year high. The Fed and the BOJ diverge in their monetary policies and that has been providing a support to the US dollar. We are highly anticipating the Japanese CPI data tomorrow for further conclusion Japanese monetary policy. Lastly, the Australian dollar versus the greenback dropped to fresh 8-month low at 0.8795 as the bearish bias is sustainable despite the oversold technical oscillators.
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