- EURUSD breaks into pre-ECB range above 1.3585, topside at 1.3675.
- British Pound still looks like 'best house on a bad street.'
- See the DailyFX Economic Calendar for today's USD-related events.
There was sufficient evidence to believe that, even though US economic data has been slumping of recent, if the Federal Reserve came out with optimistic enough June economic projections, the US Dollar could rally. Instead of the running of the bulls starting a month early, Fed Chair Janet Yellen came out and gored US Dollar bulls.
While volatility came back to life momentarily - EURUSD traded in a 51-pip range in the 10-minutes following the release of the June projections and the policy statement - the tone for US Dollar weakness wasn't really set until Chair Yellen hammered home the idea that there was no technical mechanism in place to determine when interest rates would rise.
This is a significant dovish shift, irrespective of the slightly more optimistic Fed economic projections. Several months earlier, Chair Yellen suggested that the first rate hikes would come six months after QE3 ended; saying that there is no set timetable and that there is significant uncertainty around the path of economy walks back any clear horizon for a tighter Fed monetary policy.
The US Dollar has taken a significant beating in the hours since Chair Yellen's remarks, and has broken down through significant levels versus the British Pound and the Euro. Perhaps most interesting is USDJPY right now as it flirts with the 'BoJ trendline' from April 2013. See the video above for the technical outlooks, and click the link below for rationale on buying the British Pound.
Read more: Buying Pound Weakness after CPI - Setups in GBP/USD, EUR/GBP, GBP/CHF
Investing NewsChina’s forex reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan
ForexAmid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.