The US Dollar was strong this week. Jobless claims came in at a 10-year low and provided fuel for the greenback. The market is also pricing in the relatively strong Q2 data so far as impetus for the FOMC to consider a rate hike before mid-2015. The FOMC will be releasing its monetary policy statement next Wednesday. Let’s take a look at the USDX, USD/JPY, EUR/USD, and GBP/USD.
The USDX looks poised to test the 2014-highs. USD/JPY is testing a falling channel resistance, and might need another kick to introduce a bullish outlook. The EUR/USD is falling sharply, and has further downside. Traders could still be looking to sell rallies. GBP/USD slid this week as the BoE minutes reveal concerns of wage growth, which might prevent a 2014-rate hike. Still the pair looks bullish in the long-term, so we should be looking for buyers around a key rising trendline.
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