When it seems that all is well in the markets, the voices begin to appear touting crazy ideas like the demise of the dollar, or at least as it will be replaced with other hard currencies such as the euro or the yen. The U.S. is responsible for denying these matters imagined by fame seekers.
So, in a scenario of uncertainty, the euro, the British pound, the Australian dollar, and the Canadian dollar downtrends take on their crosses with the dollar, in some cases more strongly than others.
The euro quickly lost positions after approaching late Monday to 1.34 again, that value was reached at the beginning of the week, technically forming a figure-reversal double ceiling, and indicators outlined very low. The goal for the next few hours appears near 1.3230.
As for the British pound, it maintains underlying downtrend, although, its movements are slow and without much force. The break of 1.5990 could accelerate a sharper decline of the British currency.
The yen also stars the currency market at the time. It takes strength against the dollar, after touching 89.65, and correction of 4 hour chart, downward course, has its next target in 87.95, 61.8% of the last rally.
With a lot of economic data ahead, including the index of wholesale inflation, the New York manufacturing index, and retail sales, all are published at 8:30 Eastern, the day is shaping up with the dollar as a clear winner of the contest. The opening of the American session will have, as usual, the last word.
The material has been provided by Instaforex Company - instaforex.com
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