USD 
EUR 
GBP 
AUD
It's been a wild day, with the US and Iran exchanging fire near the Strait of Hormuz, and that's sent the dollar surging. If you were watching EUR/USD, you'd have noticed it lost ground during the North American session, which was pretty wild. And honestly, it's not surprising, given the rising tensions in the region. The Euro lost ground, but it's not like it was a huge move or anything - it's still trading around the same levels as yesterday. But still, it's a move, and it's all about the dollar strength right now.
But what's really driving this move is the fear of stagflationary risks from the Iran conflict, as TD Securities pointed out in their US Economic Outlook. They're expecting a higher-for-longer Federal Reserve stance, which is typically supportive for the US Dollar. And that's exactly what we're seeing, with the USDJPY stretching to new highs and moving above the high from last week at 159.337. The price just ticked to 159.35, and it's looking like the momentum higher could continue. According to ForexLive, the pair is looking strong, and it's hard to see what would stop it from pushing even higher.
And it's not just the USDJPY that's moving - the GBPUSD is back below its 100 day moving average at 1.34748, after briefly moving above the level yesterday and again earlier today. That inability to stay above the key barometer is giving sellers the upper hand, and it's looking like the pound could be in for a rough ride. The Australian Dollar, on the other hand, is looking pretty steady, trading at 0.5330 against the British Pound, and 114.2317 against the Yen.
As the day comes to a close, the Euro is trading at 0.9133 against the Swiss Franc, and the Swiss Franc is trading at 202.8508 against the Yen. It's been a big day, and it's hard to see what's coming next, but one thing's for sure - the dollar is looking strong, and it's going to be interesting to see how it plays out. The Chicago Fed National Activity Index is coming up, and that could give us some clues about what's next for the US economy, and the dollar. But for now, it's all about the dollar strength, and the fear of what's to come.
Dollar Strength Dominates
But what's really driving this move is the fear of stagflationary risks from the Iran conflict, as TD Securities pointed out in their US Economic Outlook. They're expecting a higher-for-longer Federal Reserve stance, which is typically supportive for the US Dollar. And that's exactly what we're seeing, with the USDJPY stretching to new highs and moving above the high from last week at 159.337. The price just ticked to 159.35, and it's looking like the momentum higher could continue. According to ForexLive, the pair is looking strong, and it's hard to see what would stop it from pushing even higher.
And it's not just the USDJPY that's moving - the GBPUSD is back below its 100 day moving average at 1.34748, after briefly moving above the level yesterday and again earlier today. That inability to stay above the key barometer is giving sellers the upper hand, and it's looking like the pound could be in for a rough ride. The Australian Dollar, on the other hand, is looking pretty steady, trading at 0.5330 against the British Pound, and 114.2317 against the Yen.
As the day comes to a close, the Euro is trading at 0.9133 against the Swiss Franc, and the Swiss Franc is trading at 202.8508 against the Yen. It's been a big day, and it's hard to see what's coming next, but one thing's for sure - the dollar is looking strong, and it's going to be interesting to see how it plays out. The Chicago Fed National Activity Index is coming up, and that could give us some clues about what's next for the US economy, and the dollar. But for now, it's all about the dollar strength, and the fear of what's to come.