Trading Video: Dollar Breaks Key Support as Pound and Kiwi Soar
• Risk trends slipped led by the S&P 500, but that underlying theme didn't spur the sharpest moves
• A tempered Fed forecast finally pulled the Dollar through major support - does it continue?
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We have seem some impressive moves recently, and they some don't seem to follow key themes nor the prevailing trends. The Dollar move was among the most remarkable. While not as sharp as some, the drop from the Greenback cleared more than few major technical levels and leveraged the discussion about prevailing trends. USDollar cleared 2015's range floor as interest rate forecasts for the Fed were further deflated by data (retail sales and PPI) as well as a more temperate Beige Book. Yet, rate forecasts have dropped sharply over the past 3 to 6 months, so how much further can a delayed Fed pull the currency. Meanwhile, a break-of-necessity from a terminal USDJPY wedge should be eyed with doubt as risk trend's contribution was second to the questionable Dollar move. Both Dollar and speculative appetite will continue to feed key trends over time, but how much staying power will the Pound and Kiwi Dollar rallies maintain with the dockets thinning out going forward? We look at these abrupt and deep moves in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.