Dollar Weakness Drives Currencies Higher
The US Dollar Index has weakened in recent days due to softer US data releases. As a result, it is trading lower and could potentially break below 99.40, leading to further declines towards 99 or even lower in the medium term.
However, most currencies are performing well against the US dollar. The Euro is headed towards 1.1600, while the EURJPY is on track to reach 185-186. The Yen and Yuan are trading strongly and may soon target 158 and 6.70 respectively. Similarly, the Aussie and Pound could reach 0.7120 and 1.36/37 respectively.
The USDJPY pair may continue to trade lower as long as the Dollar Index remains weak. Additionally, the EURINR has risen above 110.40 and may target 111 or higher in the near term, while the USDINR could dip below 95.50 and test 95.20.