Appreciation of the Dollar


eurusdHaving ranged in the low level for a while now, the EUR/USD currency pair hit a new level (1.0600) on Friday, closer to its support level (1.0550). This change may be attributed to the shift by FOMC members in accordance with the hawkish comments from, which cause the dollar to strengthen. This downward trend is estimated to continue because the European Union situation is not improving.


As of Friday, the US dollar had appreciated against the GBP to hit 1.4585. This caused an FOMC member, Jeffrey Lacker, to echo his opinion that the interest rates should be increased in June, should there be no relevant data to support the opposite trend for this currency pair. Other FOMC members have also supported his opinion. At the same time, the U.K outlook has declined owing to the unclear circumstances surrounding the upcoming elections.
Since no important economic events are expected to be released today, this currency pair is expected to range between its resistance of 1.4725 and support 1.4565.

John Miller
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John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.