It has been a very volatile week for the US dollar, even though compared to the beginning of the week, the exchange rate for the EUR/USD and USD/JPY has remained virtually unchanged.
On Monday, the EUR/USD was trading at 1.5922 while USD/JPY was trading at 106.26, not far from current levels, but of course [...]

Posted in US Dollar, euro, euro record high, forex blog 1 Comment »

The Euro is rallying ahead of Thursday’s ECB monetary policy meeting telling us that the market expects ECB President Trichet to say something hawkish. A 25bp rate hike has already been discounted by currency traders, but with the annualized pace of Eurozone producer prices growing by the fastest pace on record, consumer spending in [...]

Posted in ECB, Trichet, ecb rate hike, euro, euro record high 2 Comments »

After hitting a record low against the Euro on Tuesday, there has been little follow through selling in the US dollar, leaving many traders wondering whether this may be a pause before further losses or a potential bottom.
Although I am a long term dollar bear, the break of 1.60 is far from impressive. [...]

Posted in Bernanke, Crude Oil Prices, Fed Rate Cut Expectations, Inflation, US Dollar, euro, euro record high No Comments »

One of the strategies in my High Probability Trading eBook is called the Extension Fade. The strategy looks to fade a move after a currency pair has rallied or fallen for a certain number of consecutive days.
According to the eSignal chart below, EUR/JPY is now on its EIGHTH consecutive day of strength. [...]

Posted in euro, euro record high 3 Comments »

The fourth time is the charm for the Euro as it finally pierces the 1.60 level against the US dollar. Despite slightly better than expected existing home sales in the US, a rebound in house prices, and news that the German Banking Association bailed out Duesseldorfer Hypothekenbank AG after a string of mortgage losses, [...]

Posted in Crude Oil Prices, Euro Intervention, euro record high 2 Comments »