- MarketPulse - https://www.marketpulse.com -

U.S. Dollar Higher on Data

The dollar hovered at fresh 12-1/2 year highs against the yen early on Tuesday, having extended a bullish run after a recent break through of tough resistance fueled buying momentum.  Dollar bulls also appeared to have latched onto a survey showing a pick up in U.S. manufacturing activity and construction spending, while discounting less upbeat data on consumer spending.

The greenback came within a whisker of 125.00 yen JPY=, reaching highs not seen since late 2002. It last traded at 124.90. Momentum turned bullish for the dollar after it cracked a double-top resistance around 122.00 yen last week.  The next chart hurdle is seen around 125.65-125.73, an area that capped the dollar back in the final months of 2002.

“Despite the speed of the move, we are not looking to fade it – our end year target is still 132,” said Elsa Lignos, senior currency strategist, at RBC Capital Markets.  The euro eased to $1.0928 EUR=, having fallen as low as $1.0887 overnight as it continued to retreat from last week’s peak of $1.1006.

Reuters [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.


Latest posts by marketpulsefxstaff (see all [4])