USD Climbs To The Best Month In The Year!

USD made gains on the good economic reports as the USD made the biggest gain against the EURO in more than a year. Good economic reports about the US economy may spur the FED to increase the interest rate much sooner than expected. FED is already tapering its bond purchase program also known as QE. If USD gets strong it means a strong downtrend for EUR/USD and GBP/USD.

“The dollar is at the beginning of an uptrend versus the euro and the yen,” said Alvin Tan, a foreign-exchange strategist at Societe Generale SA in London. “The market is getting increasingly hawkish about U.S. rates. Short-term forward expectations of Fed policy have been moving forward quite steadily.”

FED tapering the bond purchase program maybe an indication that the FED wants to end QE.

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