Europe is in a world of pain right now. The UK GDP contracted even more than was forecasted by analysts. Today, the German Finance minister made comments about preventing member states from straying away of the Euro Budget rules on spending. He claimed that if member states engaged in excessive spending, it would affect the Euro’s stability. Add that to some bad data, and you have what you see in the Forex chart below on the EUR/USD pair:
So, the Dollar is back in the game. In fact, this shows that the Dollar never left. When it really comes down to it, people still count on the dollar for support. We’ll see where it goes from here.