The US$ continued to post gains against all the other major currencies today following the strong rebound in the Q2 GDP and the statement from the Fed, following the FOMC, raising its assessment of the U.S. economy while reiterating that it is in no hurry to increase interest rates at this time.
Today’s driver will be the EU CPI and Unemployment data and then tomorrow we get the US Jobs/NFP numbers.
Overall, the plan appears to be unchanged, and in the medium term the dollar looks as though it has further upside potential ahead of it against most of the other majors. The shorter term charts are showing some bearish divergence so trimming some long positions may be advisable but buying dips in the dollar is still the medium term view.
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