The US dollar has remained the strongest currency in the market for the past month without wavering. It had been a significant disadvantage to other foreign currencies paired against it. The dollar index had remained strong, above 103.5.
The dollar has consistently outrun most currencies matched against it in the market. The most pronounced forex pairs include EURUSD, GBPUSD, and NZDUSD.
EUR/USD has seen its worst days ever in the market over the last five years, creating its recent all-time-low at 1.04791 this week. The fall of the EUR USD is considered an impact of the Russian-Ukraine war and increased inflation in the Eurozone. EURUSD is currently struggling for recovery, with the price pushing higher during the Asian session. To turn bullish again, EUR/USD needs to break the current resistance at 1.05360.
GBP/USD has been on a strong bearish trend for the past two months. The price has tested its two years low this week at 1.23300. The fall in pounds is because of several factors, especially the poor global economic data and the recent hike in the interest for the dollar. The pair is currently gasping for recovery with its next resistance at 1.23888.
NZD/USD has fallen massively through April to hit a new All-time-low at $0.63990 this week, marking its lowest price level in the past four years.
Many analysts believe that investors have probably lost interest in the country’s economy and now embraced the US economy due to its rising strength.
According to New Zealand’s economic survey, most investors have projected that the economy will continue to deteriorate given its high inflation rate compared to the US Dollar.
While the pair seem to be at its lowest point in four years, investors have not yet found any conviction to buy back. The steady decline in the European market appears to be dragging down the economy of every other nation dependent on Europe.
Finally, all eyes are currently set on the NFP report for today which would determine the next strong movement for these pairs. The result of the NFP today will decide whether the dollar remains stronger or dwindles in favour of other currency pairs.