Ask anyone nowadays about the future of the Dollar, and the answer is: it will almost vanish. Compare this opinion with the fact that oil, commodities, airplanes, big machines, infrastructures, ships, freight, precious metals and diamonds, and most of the food is priced in Dollars in this world, then you see how senseless this opinion is. Vanish, replaced by what? The Yuan? Perhaps in 50 years, when we're governed by Chinese mandarins. The Euro? A currency agreement between sovereign states inside of a political agreement to form a borderless region without a capital is not the same as one solid currency in one single state with a capital. No, it will not be replaced by another currency, but there is another reason behind all this. With every drop of the Dollar our things are getting more expensive. Then there is inflation danger? Yes, there obviously is, at least feared for now. And that is the reason for a weaker Dollar.
We take note of that, of course, and build it in our daily published trading bands, as showed below for today's trading as well. But take in mind that the USD is still heavily influenced by the inverse correlation with the stock markets - as long as they are in their summer dream the Dollar cannot come up - but that can change quickly. Profit taking and run with it is never wrong. Note today's US fiscal policy for August, most probably the only market moving factor today, at 20:00 CET. Expected is a further ballooning deficit.
Intraday Market Outlook for Day Traders
EUR/USD
The pair slowed down somewhat its upsurge, but still is above the 1.4500 handle level, currently trading at 1.4590. It seems to want to go higher, after a longer pause perhaps, because of its overbought status now. We expect sooner or later another effort, leading to prices above 1.4650.
GBP/USD
The pound is also climbing new highs against the Dollar, being in fresh bullish mood this European morning and trading around at 1.6705 now, nearly below its high of today at 1.6740. After some consolidation now, which does not lead much below of 1.6680, we expect prices today of over 1.6790.
USD/CHF
The Dollar deteriorates more and more against the Swiss Franc, slowly though, in very low volatility, but consistently day by day. Currently priced at 1.0380 in early European trading, we soon see a down objective of 1.0290 today to materialize.
USD/JPY
Even against the Yen the Dollar is loosing ground, being weak in all of Asian trading and in this European morning. Against other currencies, the Yen tends to be weak, but the present Dollar-selling avalanche seems to be unstoppable. Currently trading at 90.90, we see some recovery attempts today, leading to marks around 91.50.
We take note of that, of course, and build it in our daily published trading bands, as showed below for today's trading as well. But take in mind that the USD is still heavily influenced by the inverse correlation with the stock markets - as long as they are in their summer dream the Dollar cannot come up - but that can change quickly. Profit taking and run with it is never wrong. Note today's US fiscal policy for August, most probably the only market moving factor today, at 20:00 CET. Expected is a further ballooning deficit.
Intraday Market Outlook for Day Traders
EUR/USD
The pair slowed down somewhat its upsurge, but still is above the 1.4500 handle level, currently trading at 1.4590. It seems to want to go higher, after a longer pause perhaps, because of its overbought status now. We expect sooner or later another effort, leading to prices above 1.4650.
GBP/USD
The pound is also climbing new highs against the Dollar, being in fresh bullish mood this European morning and trading around at 1.6705 now, nearly below its high of today at 1.6740. After some consolidation now, which does not lead much below of 1.6680, we expect prices today of over 1.6790.
USD/CHF
The Dollar deteriorates more and more against the Swiss Franc, slowly though, in very low volatility, but consistently day by day. Currently priced at 1.0380 in early European trading, we soon see a down objective of 1.0290 today to materialize.
USD/JPY
Even against the Yen the Dollar is loosing ground, being weak in all of Asian trading and in this European morning. Against other currencies, the Yen tends to be weak, but the present Dollar-selling avalanche seems to be unstoppable. Currently trading at 90.90, we see some recovery attempts today, leading to marks around 91.50.
