by Damian -
The US dollar exchange Rate strengthened to a seven-year high against the yen before U.S. data this week that economists say will back the case for higher interest rates as Japan and Europe ease policy. Japan position is getting worse as deflation is triggered by lower costs because of the fall in oil prices and may put further pressure on a unstable political and financial situation.
The greenback (US Dollar) advanced also to its strongest level in two years against the euro exchange rate – this is causing Draghi further headaches before the ECB meets tomorrow.
Not to be outdone the US Dollar also reached a four-year high versus the Australian Dollar after a report showed Australias growth was less than analysts forecast.The Australian economy is falling into free fall as commodity prices tumble and the housing market overheats – this isnt going to be pretty!
Team US Dollar is on fire and the US dollars uptrend is likely to continue and thats driven equally, if not more, by whats going on outside the U.S. as well as whats happening in the U.S.