USD Continues to Surge on Fed’s Hawkish Stance

CURRENCIES REACT MORE SENSITIVELY TO THE FED THAN EQUITIES

The US dollar continued to outperform all but one of the other major currencies. It gained the most against NZD, AUD, and CHF in that order, while it lost some ground only versus JPY.

NZD/JPY — TECHNICAL OUTLOOK

NZD/JPY took a deep dive yesterday, pushing further away from the short-term downside resistance line taken from the high of May 27th. Given the recent strong decline, there is a possibility to see a small correction higher. However, if the pair continues to trade somewhere below that downside line, the path of least resistance could still be to the downside.

GBP/USD — TECHNICAL OUTLOOK

GBP/USD continues to feel the heat from the sellers, as the pair is still drifting lower, while trading well below a short-term tentative downside resistance line taken from the high of June 11th. The RSI and the MACD on our 4-hour chart seem to support the downside scenario for now, as they show negative price momentum. For now, we will take a bearish approach, and continue aiming lower.

AS FOR THE REST OF TODAY’S EVENTS

During the early European morning, we already got the UK retail sales for May. Although headline sales missed their forecast, the core rate came in well above its own consensus.

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JFD is a leading Group of Companies offering financial and investment services and activities.