Dollar flexes its muscles, Equity markets recover some confidence
The US Dollar has been looking pretty perky over the last week or so, making good ground against Sterling (GBPUSD) & Yen (USDJPY), and perhaps most obviously against the antipodean pairs (AUDUSD & NZDUSD). Both Aussie & Kiwi look like there isn’t much to prop them up here, and it’s difficult to have much conviction in buying at these levels.
The dollar has been doing good work against the Swiss Franc too (USDCHF), and here at least progress should be hampered above 0.9960 where there is some natural resistance.
Equity Indices appear to be recovering some confidence but the fragility we’ve seen over the last 3 months won’t have disappeared overnight, so there will be ultra-tight stop losses following the market as it rises.