The DollarIndex rose to 91.0, a level last seen in March 2006.
The DollarIndex is being sustained by the strong greenback and a ‘patient’ approach to raising interest rates, as cited by Janet Yellen from the Federal Reserve in December.
The EURUSD dropped to levels last seen in 2012, trading at 1.204 from an opening of 1.208, whilst sterling continues its fall against the US dollar reaching 1.55. The yen is also loosing again after its rally in mid-December 2014 with USDJPY standing at 120.37.
Meantime, as trading begins in the new year, Asian futures are seeing positive figures. The Japan225 [Nikkei] is up to 17,600 from 17,487 opening today, as Shinzo Abe settles into his new term as incumbent prime minister and tries to stabilize the weak yen with aggressive programmes of quantitative easing.
The HongKong45 [Hang Seng] is also rising on intraday trading. On the back of speculation from China to ease monetary policy, Chinese stocks on the HongKong45 are supporting the index giving it a slow but sure start to the new year opening at 23,663 and rising to 23,843. China’s slowing growth, with the state-managed Purchasing Manager’s Index falling from 50.3 in November to 50.1 in December, will be watched closely in the near future to check that the contraction level of above 50 is maintained. Bloomberg economists predict that the growth of 7.4% seen in 2014 will slow to 7% for 2015. Holidays in China and Japan today will make trading slow.
In the US, after the slight dip in the new year, the USATECH100 [Nasdaq] is making little gain as tech companies such as Microsoft, Intel and IBM are all slow to trade.
MT4 chart: DollarIndex
MT4 chart: EURUSD
MT4 chart: Japan225
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