US Dollar Declines for 6 Straight Days
04/29/2015 9:00 am EST
The staff at FXTimes.com takes a technical look at how three currency pairs have performed so far this week as well as the events that triggered their respective movements, along with the technical bias for each going into the second half of the trading week.
- US dollar index declines for 6th consecutive day, falling 0.7% to 96.09.
- EUR/USD approaching 1.10; GBP/USD disregards weak UK GDP to climb above 1.53.
The US dollar weakened across the board on Tuesday, as weak economic data and expectations for a dovish Federal Reserve kept demand for the greenback subdued.
The dollar index, a weighted average of the greenback against six currencies, declined for a sixth consecutive day, falling 0.7% to 96.09. The index has declined nearly 2% over that stretch.
Technical Bias: Bullish
The EUR/USD broke through the 1.09 barrier on Tuesday and is trading above the key 1.0950 resistance. The EUR/USD consolidated at 1.0965 in the early New York session, up 0.75%, and setting the stage for a test of the psychological 1.1000 level. Selling interest is likely to increase around that level, with the RSI well into oversold territory.
The euro was supported on Tuesday after Greek Prime Minister Alexis Tsipras expressed confidence that Greece and its international creditors were closer to finalizing a new bailout deal. According to Tsipras, the initial deal could come as early as May 9.
Technical Bias: Bullish
The GBP/USD made a major advance on Tuesday, climbing to its highest level in more than two months. The pair is trading right around the immediate resistance (1.5318) and is looking to extend its gains to 1.54, a level not seen since February. The GBP/USD has gained more than 700 pips since mid-April.
Technical Bias: Bearish
The USD/CAD continued to backtrack on Tuesday, extending its biggest losing streak in recent memory after Bank of Canada Governor Stephen Poloz assured Canadian Parliament that the oil price shock does not appear to be larger than expected. Poloz also reiterated that the Bank expects non-energy exports to lead the recovery in the second half of the year.
US Consumer Confidence
The Conference Board’s consumer confidence index declined unexpectedly in April, as concerns about the labor market weighed on short-term expectations. The proxy for consumer spending declined to 95.2 in April from 101.3 in March. A median estimate of economists called for an increase to 102.5.
By the Staff of FXTimes.com