Dollar dives deep!

There’s really no other way to describe the financial beating the US Dollar is taking against the rest of the world than by saying “ouch.” The USD is down again, as today’s US economic releases failed to generate the same bullish sentiment surrounding economies like the United Kingdom and Australia. Technical traders were closely looking at the GBP/USD pair, which broke the psychological 2.0000 level for the first time in 15 years on a nearly 200-point rally from overnight lows. Dollar losses against the British Pound were fairly isolated to the individual pair, but weak data from the US quickly lead others to follow suit, most notably the EUR/USD, which pushed to 1.3593 before falling to range-trading near the current 1.3560 level. Most traders are wondering if these new highs can be held in the upcoming months. News out of the US was surprising bullish, with housing numbers beating expectations and supporting speculation that a bottom in the sector is in place after the biggest contractions in 15 years. Both housing starts and permits last month rose 0.8 percent to 1.518 million and 1.544 million, respectively. Finally, the USD/JPY pair was working with the same anti-Dollar momentum on a 119.90 high that has sufficiently cleared out a number of technical levels. Looking forward, we might expect to see good ranges and big moves.

XPRESSTRADE Analyst David Hilgeman