Bear Market

Although correlations between currency pairs are strong (or weak) for days, weeks, months, or even years, they may eventually change–sometimes when you least expect it!

It’s always difficult to pinpoint where we are in terms of a trend. Long-term trends in the currency markets have ranged from six to ten years, measured by the various bull and bear markets in the dollar since the inception of the free-floating currency market back in 1971.

Last week’s themes of euro domination and yen bashing continued to play out this week, with Aussie weakness as a new theme. What drove price action on these currencies? And how about the other currencies? How did they fare this week? Time to find out!

If you somehow missed yesterday’s RBA statement, or if you’re just interested in some of the details that convinced forex traders to send the Aussie higher, then here are a few things you need to know about the RBA Governor Glenn Stevens’ June statement.