June a rough month for USD

As we move into July and the second half of 2014 (already!), we think it would be valuable to review the performance of some of the major currencies and markets that we regularly discuss. On a day-to-day basis, it’s easy to get caught up in each minor wiggle on a chart, but by taking a step back and reviewing a month’s performance on the whole, major trends become much clearer.

 

June in Review:

  •       The Norwegian krone fell sharply against the U.S. Dollar Index (NYBOT:DXU14) as the Norges bank pushed back its timeline for a rate hike to the end of next year
  •       The FTSE and DAX both failed to break above major resistance levels and pulled back in June
  •       The Swedish krone held steady against the dollar as the market looked ahead to this week’s Riksbank meeting
  •       The euro ticked higher after the European Central Bank refused to introduce outright quantitative easing at its June meeting
  •       The yen appreciated slightly, though it remains trapped in a 5-month range against the greenback
  •       The yuan stemmed its bleeding on the back of strong manufacturing data out of China
  •       The Swiss franc rallied alongside its correlated neighbor, the euro
  •       The commodity dollars (AUD, CAD, and NZD) all gained strength in risk-on trade after signs that China’s economy had returned to healthy growth
  •       The pound broke out to a new 6-year high as the Bank of England hinted that it may raise rates late this year
  •       The S&P 500 Index (CME:SPU14extended its gains ahead of the Q2 earnings season
  •       WTI spiked more than 2% as escalating geopolitical tensions in the Middle East drove oil higher
  •       Gold (COMEX:GCN14) surged over 6% in June on the broadly weaker U.S. Dollar and safe haven demand following violence in the Middle East and Eastern Europe

 

 

“What is past is prologue” -- William Shakespeare 

About the Author
Matt Weller

Senior Technical Analyst for FOREX.com. Matt has actively traded various financial instruments including stocks, options, and forex since 2005. Each day, Matt creates research reports focusing on technical analysis of the forex, equity, and commodity markets. In his research, he utilizes candlestick patterns, classic technical indicators, and Fibonacci analysis to predict market moves. Matt is a Chartered Market Technician (CMT) and a member of the Market Technicians Association. You can reach Matt directly via e-mail (mweller@gaincapital.com) or on twitter (@MWellerFX).

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