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

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Strategy Video: Am I Over or Under Trading, And How Do I Correct It?

  4. Forex News

    Japanese Yen: Up or Down? Next Week Holds the Keys

  5. Forex News

    Nonfarm Payrolls coming up: expectations -TDS

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!