Investing.com - Financial Markets Worldwide

Dollar To Move Lower After Friday's Strength

ByIan Copsey
Published 06/08/2015, 12:19 AM
Euro US Dollar
0.18%
British Pound US Dollar
0.00%
US Dollar Japanese Yen
-0.14%
Australian Dollar US Dollar
-0.93%
Euro Japanese Yen
0.05%
DX
-0.20%

The Non Farm Payrolls certainly provided impact. I had been working with two alternatives over the past week, waiting for a sign of a break in one of the alternatives. Having said that, I do have some reservations due to some indications in GBP/USD and EUR/JPY. Once these have been resolved, we should hopefully have a stronger, unified outlook.

As this week begins, I’m not convinced that Friday’s strength in the dollar will continue directly. This seems to be implied in the three Europeans at least, and probably AUD/USD. As these develop, there should hopefully be a greater idea of the resolutions required in GBP/USD, EUR/JPY and AUD/USD. Therefore, I feel the initial reaction today will be for the dollar to move lower, and we’ll then have to observe the relative development across the pairs.

As pointed out on Friday, EUR/JPY has still failed to reach the support area I indicated, and this can still provide a downside barrier. It implies a rally to a new high, but beyond that point, some greater care is going to be required. This begs the question of which – or both – of EUR/USD and USD/JPY will provide the boost higher. I feel today will provide that information. The cross is probably a decent trade today.

So, while the need for some due care and attention is required to confirm my suspicions, I have a feeling that this will generally be a less directional day.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.