USD Graphic Rewind: Dollar Index Slides as Liquidity Returns After Holiday's
Created using Bloomberg
The dollar index was mostly unmoved on Monday with the US away for Memorial Day weekend and the UK enjoying yet another Bank Holiday, as such liquidity was scarce and trade remained on a low ebb. Looking then only at the over-night Asia/Pacific session the buck has picked up where it left off on Friday, on the back foot, and continued to slide toward the 9500 level. Early in Europe the index has managed to pare this gain back a tad as the euro nears the 1.4500 level which looks like it will act as a cap to the current up-move, but should the euro continue higher amid chatter that Germany is easing its stance on Greece then the index could collapse back toward 9400 and lower.
Written by Jonathan Granby, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.