The USD rally continues as EUR breaks towards 1.2600 and the DXY index breaks up to a four‐year high and above 86.00. The additional USD strength was on the back of: 1) falling Eurozone inflation; 2) ongoing unrest in Hong Kong; 3) weak industrial production from Japan; 4) and strong USD sentiment. Today is month end potentially providing important flows, but also seeing the release of the quarterly FX reserve from the IMF and U.S. housing, Chicago and Milwaukee PMI and a speech from the Fed’s Powell (consensus voter).
Read the full report: FX Daily