Strong Dollar Trade Chart 1: The price of Gold began its parabolic ascent as in the summer of 2007 moving from approximately $665 to over $1000/oz. as the DXY (U.S. dollar) gapped lower on Fed actions to combat the credit bubble.
The Federal Reserve talk about tapering its monetary easing programs is getting louder and in turn speculation is ramping up as well. The U.S. dollar climbed higher against the majors on these comments and comments from John Williams, President of the San Francisco Fed.
U.S. Dollar quietly surging higher and this morning kisses the closing level of July 24th last year, which marked multi-year highs.
The USD/JPY trade continues to be the currency pair that traders are piling into as the pair nears a 4 ½ year high.
Looking across the currency landscape this morning I wanted to circle back around to the USD/CAD currency pair this morning.
The U.S. dollar last week was stronger across the broad spectrum and continues to remain strong as we begin the new week.
U.S. Weekly Claims report show the number of people filing claims last week dropped to 323,000 down from previous report of 327,000 extending the positive sentiment for the U.S. job market and in turn supporting the U.S. dollar against the majors. The EUR/USD is currently trading around the 1.3134 or -0.14% lower ahead of the U.S. session.
The economic data teeter-totter ride continues with the teeter-totter pushing the euro higher on surprising better than expected German industrial output data eases concerns over the euro zone’s largest economy.
The euro vs the U.S. dollar or EUR/USD currency pair continues into the start of the new week in its narrow trading range and will likely remain in the trading range at least until in the U.S. session is fully online.