The dollar is reaching its lowest level since last October

Since last Thursdays poor US GDP miss we have seen nothing but selling, despite a strong US employment number last Friday the market has shrugged this off with genuine fears the US economy could be heading back into recession as the reality of QE not working starts to take fold.

DXY weekly chart

We have seen GBPUSD approach the 1.70 and NZDUSD 0.8776 with EURUSD now approaching yearly highs with the 1.40 being the focus and USDJPY through the 101.85, the next main event will be the ECB this Thursday and should they disappoint expect EURUSD to play catch up and a break of the 1.40.