Dynamics

Reducing the U.S. dollar to a halt. At the same time EUR /USD pair once again failed to gain a foothold above the 1.4600 mark, the pair GBP /USD fell below 1.6700 marks, and the pair USD /CHF rose slightly to 1.0400.

Japanese yen, at the same time, continued to strengthen rapidly against the dollar and other currencies. When the pair USD /JPY dropped to a mark of 90.00, and the pair EUR /JPY fell to 131.50.

Commodity currencies were also unable to continue to rise against the U.S. dollar. Thus, the pair AUD /USD fell back to a mark 0.8600, the pair NZD /USD above 0.7000 restrained, and the pair USD /CAD was trading around 1.0800.

Causes

On Friday, the dollar was trading extremely volatile, but remained in ranges against most currencies, despite attempts to further easing. Market participants still preferred to rely on the state of stock markets, which continued to rise throughout the day. However, towards the end of the North American session, the index had difficulty in continuing the growth and completed the bidding for the negative territory. Also under pressure were the price of oil. These two factors, as well as alignment of positions before the weekend, the dollar had little support, and he was able to reverse the losses incurred during the day. The exception was the Japanese yen, against which the dollar continued to decline rapidly.

What to expect?

This morning the trend towards strengthening of the dollar has continued, as the Asian stock indices show a very significant negative dynamic. Perhaps this situation will continue throughout the day, but later in the week probably continued decline of the dollar. The reason for this may be the publication of an abundance of important macroeconomic data from the U.S. and the eurozone countries, against which the mood of investors and their appetite for risk may be increasing again. In addition, correction of unsafe rates observed at the moment, will bring them more attractive to purchase levels, and later their growth may be exacerbated by technical factors.

At the same time, today is not expected publication of important data. The only indicator worthy of the attention of investors, will be manufacturing in the euro zone in July. Expected a slight improvement in the rate that is unlikely to have more impact on the euro and other currencies.

Why worry?

recovery of the dollar could become more comprehensive if the stock indexes continue to decline rapidly.

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