This week a major dollar sell-off found little resistance. The major market players see the FOMC statement backdrop as a green light to pile on the decisive bearish USD downside pressure. Therefore it is no surprise that the greenback is the weakest fx currency of the majors at present. The US
dollar decline has no clear end in sight.
The Swiss Franc is pushing ever higher and has made serious progress against the dollar this week making fresh all-time lows. A retrace looks imminent but this pair is very one sided right now.
The Japanese Yen had a temporary drop earlier this week but also recaptured all lost ground against the greenback and subsequently pushed the USD/JPY pair to new lows.
The loonie (Canadian Dollar) is dropping in line with it’s US neighbour and even inflated oil pricing wasn’t going to break the strong correlation.
EUR/USD has seen a subdued week ending after a very bullish start. The general upside bias remains though with higher time frame fx correlation data supporting further upside price action.
If considering the aforementioned dollar negative price action it will come as no surprise that the US dollar index is pushing towards 2008 lows at present and this may provide a temporary respite.
Article Source: Forex Trading Blog