Why is the US Dollar Surging, and How Might we Trade It?

By DailyFx | Updated August 05, 2014 AAA

DailyFX.com -

- US Dollar hits fresh multi-year highs versus Euro

- Breakdown in traditional correlations forces us to rethink Dollar drivers

- Focus remains on key technical levels as professionals very USD-bullish

The US Dollar has surged to fresh multi-year highs versus the Euro, but what’s driving it and how might we trade its next moves?

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

US Dollar Surges, Sending DJ FXCM Dollar Index to best 20-day Rally of 2014

Why is the US Dollar Surging, and How Might we Trade It?

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

DJ FXCM Dollar Index Correlation to Yields has All but Collapsed

Why is the US Dollar Surging, and How Might we Trade It?

Data source: Bloomberg, Prepared by David Rodriguez

Traders Positioned for further US Dollar Strength

Why is the US Dollar Surging, and How Might we Trade It?

Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.

Euro Nears Major Level of Contention at $1.3300, Remains Critical Line in the Sand

Why is the US Dollar Surging, and How Might we Trade It?

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

Why is the US Dollar Surging, and How Might we Trade It?

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

Related Forex Analysis
  1. Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions
    Forex News

    Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions

  2. Session Recap: When money comes from Japan; EUR/USD at 14-month low, USD/JPY 7-year ...
    Forex News

    Session Recap: When money comes from Japan; EUR/USD at 14-month low, USD/JPY 7-year ...

  3. EUR/USD recovery capped at 1.2540
    Forex News

    EUR/USD recovery capped at 1.2540

  4. USD to gain further support, ECB in focus - Commerzbank
    Forex News

    USD to gain further support, ECB in focus - Commerzbank

  5. EUR/USD downtrend set to continue in the coming weeks - UBS
    Forex News

    EUR/USD downtrend set to continue in the coming weeks - UBS

Trading Center