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The dollar trend

Here are the most recent news about the currency markets. Trade on assets with the trend.

Upon reaching the summit, the dollar is then bluntly curled against the onslaught of the Swiss franc. The SNB has maintained its monetary policy of a Libor ranging from zero to a quarter point. The chief of the institution, Jordan, said it was wise to keep the cap from a low of national money against the euro at 1.2000 CHF as below that level, the Swiss economy would be in jeopardy. The head of the SNB has therefore welcomed the resumption of values around the 1.2350 EUR/CHF currency market. The Cross USD/CHF meanwhile demonstrated difficulty in freeing the high of the year. A new crossing under the level of 0.9500 certainly reassured sellers. Today Switzerland announces its IPP.

The euro regained some ground late yesterday trading against the U.S. dollar after falling to 1.2911. However, the downward trend continues on this currency pair, mainly because of the obvious economic differential between the two sides of the Atlantic. Unemployment claims figures in the United States have also beautifully illustrated this fact. Today, the market will digest a myriad of US indicators that will, according to the consensus, reconfirm the recovery of the U.S. economy. This will be the Empire Manufacturing Index for New York area, the CPI, industrial production, and finally, the index of consumer confidence. The medium-term trend remains on the euro, according to technical analysis, with a bearish price target at 1.2700.

Good American numbers and confirmation of the appointment of Huroka as governor of the Bank of Japan had the effect of causing the U.S. dollar to rise on the forex market. The Dollar Yen pair has evolved Thursday between 95.67 and 96.58, a band of fluctuations of almost 100 pips. The market is rather optimistic about this currency pair. You should therefore look for the resistance levels to cross now. This is in a first time 96.48 which limited the increase of the pair yesterday, and then 97.7.

The end of the week is pretty quiet for the pound sterling with few new macroeconomic indicators. However, the pair knows an interesting movement as we see a pull back which is a well-known figure by the chartists. This pull back has led the cable still up yesterday with a peak at 1.5039. For the increase to continue in the short term, it is necessary that the pair remains above 1.5000 which acts as a former support and a resistance now, which also corresponds to a Fibonacci retracement of 50%. In short, the level is crucial. We therefore look carefully at the evolution of this pair to see if it closes the week above 1.5000.

The Australian dollar had a good session on Thursday thanks to strong employment figures and unemployment in Australia. These data have reassured traders who worried a little in recent weeks about the country’s economic development. In fact, there has been some catching up on this pair with the Australian dollar having a higher daily at 1.0392. However, the level of 1.0400 could not be passed. The market will take care for the continuation of this move, at least not until the 1.0400 level which acts as resistance has not been exceeded. We will also pay attention to the volatility inherent in the publication of U.S. macroeconomic this afternoon.