The Resumed Strength of US Dollar

It seems the US Dollar is unstoppable. Though there was no event for USD and lots of better-than-expected reports for other currencies, the USD still dominated in all the pairs. Despite lacking any specific reason, dollar strength was shown in USD/JPY, USD/CHF and EUR/USD. Some analysts are blaming the stalemate in Syria for the lack of action in other major currencies. As yesterday was Labor Day, an USA holiday, the dollar is expected to act stronger when US traders return. There are some events for the US dollar in this week including IBD/TIPP, construction spending and ISM manufacturing PMI.

On the other hand, the downtrend of Euro is showing no sign of slowing down. Most of the Euro pairs are creating new records of weaker levels. EUR/USD went past the psychological level of 1.3200 and ended the day at 1.3183. EUR/JPY has climbed up to 131.oo mark. As both Italy and Spain provided better manufacturing PMI figures, EU region’s overall manufacturing PMI got promoted to 51.4 from 51.3. Nonetheless, it seems sentiment is playing important role in current market situation.

The British Pound is in a comparatively better condition than Euro. Its latest manufacturing PMI report was a huge lift for the country. At 57.2, this is the highest rating for the country in the last 2 years. For the past five months, the PMI figure has been increasing for GBP. As the construction PMI is scheduled to release today, GBP has a strong possibility of gathering more strength.

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