Investment houses in December of last year predicted that the dollar would fall in value, with many stocks going the opposite way. 100 Forex Brokers took a look at how FX prices have performed in the first months of 2021.
So far a risk-on environment has meant a higher euro, British pound, Australian dollar, Canadian dollar, oil, stocks, and a lower US dollar. The only pairs acting differently have been the commodity pairs and the USDJPY that follows stocks higher. In recent years the USDJPY correlation with the equity markets changed, the pair did act in 2021 as it was supposed to act in a risk-on environment but this has begun to change.
For the rest of this quarter, the most interesting price action should be in the AUDUSD, EURUSD, and the USDJPY currency pairs.
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