Talking Points:
• High pressure fundamental scenarios and key technical levels generated big moves
• The Dollar has dropped across the board this past session, but its fundamental backdrop looks steady
• Big moves in EURUSD and AUDUSD may be the doing of Greek and RBA news, and its influence is unstable
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The Dollar dropped across the board this past session. Leading the charge were 2.2 and 2.1 percent rallies for AUDUSD and EURUSD respectively. With two of the most liquid exchange rates in the FX market pulling the Greenback down, it is not surprising to see the currency lose ground elsewhere. However, to assess follow through it is important to establish whether this is innate weakness on the Dollar's part or a push from more motivated counterparts. Neither US interest rate expectations nor underlying risk trends were materially moved this past session. That said, there was a serious Euro rally on Greek news and Aussie surge through an RBA hold. Both of these catalysts can generate serious heat, but follow through is questionable on both accounts. What lies ahead for these majors and will the dominant themes take the reins? With discuss that in today's Trading Video.
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