Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

USD Performing Well Against JPY, Euro, GBP

By Chris VermeulenForexApr 06, 2022 03:55PM ET
USD Performing Well Against JPY, Euro, GBP
By Chris Vermeulen   |  Apr 06, 2022 03:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Since the U.S. dollar plays such a strong role in global economics, we thought it appropriate to see how it is performing versus other currencies and investments.

For the U.S. consumer, a strong USD means U.S. goods are more expensive in foreign markets. For U.S. companies that buy or sell products/services globally, a strong USD means they are less competitive. A strong dollar is a significant headwind that erodes the profits of U.S. multinationals.

Since we trade and invest in ETFs, it is especially interesting to see how the USD has been trading in 2022 compared with SPDR® Gold Shares (NYSE:GLD), SPDR® S&P 500 (NYSE:SPY) and Invesco QQQ Trust (NASDAQ:QQQ). Gold is the top performer, followed by the Australian dollar (AUD) and the U.S. dollar. We can also see on the following chart the recent recovery rally in both the SPY and QQQ. Amazingly, the QQQ has recovered half of its 2022 loss in just the last few weeks.

DXY – Daily Comparison Chart

U.S. Dollar Index Daily Chart.
U.S. Dollar Index Daily Chart. - TradingView

U.S. Dollar Vs. Major Currencies Performance Mixed

The following chart from shows us that the USD has strengthened vs. the Japanese yen, the euro, the British pound and the Switzerland franc. But also that the USD has weakened vs. the Australian dollar, New Zealand dollar and the Canadian dollar.

The AUD, NZD and CAD reflect the impact of rising energy and commodity prices. The JPY reflects Japan’s negative interest rate as well as its dovish economic policy, while the EUR, GBP and CHF are suffering from capital outflows due to the impact of Europe’s Russia Ukraine war.

U.S. Dollar Year To Date Relative Performance Vs. Majors

U.S. Dollar Relative To Major Currencies In 2022.
U.S. Dollar Relative To Major Currencies In 2022.

U.S. Dollar Appreciated 11.19%

Since May 25, 2021, the USD has been steadily appreciating as a stand-alone market. We can also see that the USD has been in a bullish upward-sloping channel. The USD has offered many buying opportunities at both its bottom trend line as well as its Fibonacci support levels. It continues to make higher highs and higher lows.

The USD remains attractive as it is the primary reserve currency for government central banks. The FED, with its recent rate hike, has signalled that it is planning on additional increases. The USD is considered a safe-haven investment and benefits from rising energy prices as the U.S. is a major producer of global oil and natural gas.

DXY Daily Chart

DXY Daily Chart.
DXY Daily Chart. – TradingView

Australian Dollar Gained 45.15%

The Australian dollar enjoyed a strong rally in 2020 as it gained more than 45%. After hitting resistance at its 1.618 Fibonacci extension, the AUD corrected about 38% of its up-swing. This correction ended when buying resumed at the AUD previous high or the 1.000 support level. Since Jan 2022, the AUD has already appreciated about 9%. This is similar in both percentage and time frame to the S&P 500 and the Nasdaq 100 equity markets.

AUD/USD – Daily Chart

AUD/USD Daily Chart.
AUD/USD Daily Chart. – TradingView

USD Performing Well Against JPY, Euro, GBP

Related Articles

Kenny Fisher
Euro Tumbles To 20-Year Low By Kenny Fisher - Jul 05, 2022

The euro enjoyed a quiet Monday, as the currency markets were calm with U.S. markets closed for a holiday. The euro started the Tuesday session without incident, but the roof fell...

Al Brooks
EUR/USD: Bears Break Below 2017 Low By Al Brooks - Jul 05, 2022

    The EUR/USD broke below the 2017 low during the overnight session. This is a bear breakout of the past two months. Bears want a successful bear breakout and measured move down...

USD Performing Well Against JPY, Euro, GBP

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Mohd Izhar Muslim
Mohd Izhar Muslim Apr 07, 2022 3:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is great news, thanks for the article 💯
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email