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 Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’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​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid 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.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As 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.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One 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 ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access 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.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center