Thursday, 19 May 2016

XE Market Analysis: Europe - May 19, 2016

The dollar has remained underpinned, edging out new highs versus the euro, yen, commodity and many emerging market currencies. The move has tracked a spike in U.S. Treasury yields after the FOMC minutes indicated a June tightening was "likely" if data remained solid and supported the outlook for a pick up in Q2 growth. EUR-USD clocked a seven-week low at 1.1206, taking out the Apr-2 low at 1.1218 on route (which we had been targeting). USD-JPY edged out a three-week peak at 110.33, which surpasses yesterday's high by 8 pips.



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