The dollar has been shifting and changing its trajectory; in particular, it has been rising against the Japanese yen and falling against the euro. In this short article, I will review the U.S. dollar's recent movements, paying extra attention to changing yield differentials and near-term downside risk.
In the chart below, we have the U.S. dollar price in terms of euros, pound sterling, Australian dollars, Swiss francs, Canadian dollars, euros, and Japanese yen. The prices are mapped using lines representing weekly closing prices (the chart is measures change in percentage terms).
(Chart created by the