TheÃ‚Â GreenbackÃ‚Â isÃ‚Â strengthening against theÃ‚Â EUR and ESPECIALLY the GBP due to risk aversion as carry trades areÃ‚Â under pressureÃ‚Â due to plunging stock markets. Other commodity currencies are also feeling pressure due to the drop in gold and oil prices.
The SterlingÃ‚Â alsoÃ‚Â plungedÃ‚Â after the release of the MPC minutes. The minutesÃ‚Â indicated that BoE’s decision to keep rates on hold wasÃ‚Â done by a 7-2 vote. The general consensus was for a 8-1 vote. Therefore this dovish tone, accompanied by risk aversion is reflected in the new bearish major trend we can see on our charts. Most of the indicators, especially the MACD, signals that bearish momentum is increasing as well..
The EUR is quite steady and resilientÃ‚Â at this time (although we can clearly see that bearish momentum is increasing as well)Ã‚Â and we might still see a strong EUR consolidation as opposed to a sharp decline as we see on other pairs, especially the GBPÃ‚Â
Ã‚Â On this bearish note, may you all enjoy a happy and fulfilling long weekend!