After the drop of consumer confidence for June in the U.S. and Japanese and British economic data showing a similar picture, the fate of the world economy still remains in the dark. No wonder then that Forex markets remain in the old sideways market we’ve experienced for months. Currently, there is simply no reason to detect some decisive move in the majors against the USD – except the notion that the U.S. will come longer term first out of recession, and suffer inflation first, therefore
The US Dollar Index ends a brutal second quarter on a bright note. The main perpretrator was the British Pound and it’s volatile reaction to economic data, which triggered a false-break of a 4-week wedge formation. This highlighted the EUR/USD’s inability to clear the 1.4137 pivot and allowed the Greenback to maintain support at a key fibonacci retracement at 79.47. The weaker consumer confidence number in North American trade spurred renewed risk aversion causing commodities, equities and