The US dollar did not wait for American traders to wee the sunrise on the day after Labor Day and it resumes its rally.
EUR/USD is nearing 1.31, USD/JPY touched 105 and other currencies are also bowing before the greenback.
The tensions around Ukraine continue to dominate the headlines, with no signs of de-escalating. Russian troops and pro-Russian rebels are pushing the Ukrainian military back. In this kind of environment, one would think that the yen would be sought after. However, this is not the case.
105.01 is the new high for USD/JPY:
Another currency pair that is hard to understand is GBP/USD: the UK published better than expected construction PMI earlier, and the currency hardly enjoyed it.
On the contrary, it eventually dropped and is getting closer to 1.65.
It’s easier to understand EUR/USD: growth is missing from the European picture, the ECB is closer to more stimulus and Ukraine has the biggest impact on the 18 country monetary Union.
The new low is 1.3109. The round number is also support. Weak support follows at 1.3050, and the real line in the sand is the round number of 1.30.
