Source: Forex.com
USD sellers returned full force in today's Asia session in the first real test of the USD bulls in a week. EUR/USD broke through 1.5450, running all the way through 1.5550. USD/JPY was also weak slicing through 100.50 but holding above 100.00. There wasn't any confirmed news regarding the sharp sell off but we heard rumors of non-official sellers of the USD (also known as sovereign wealth funds). JPY crosses were mostly higher as equity markets continue to trade higher.
Looking forward, London is back from vacation and we should expect to see more depth to the market. It will be interesting to see if the recent USD rally was a correction in a longer term trend lower in the USD or the beginning of a bottom in the USD. Expect commodities to trade in a negative correlation to the USD so if we see gold get back over $1,000 we could renewed interest to sell the USD. On the economic front, tomorrow morning is US consumer confidence which is expected to weaken further to 73.5.
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