The US dollar soared against major currencies on Friday on growing speculation that the Federal Reserve could soon begin to rein in its bond-buying program and after data showed US consumer sentiment hit a 6-year high in early May.
The US Dollar Index is very strong right now: at its highest value since July 2010, closing at 84.24 on Friday.
The contract is a “basket” of currencies against the US dollar, including the Swedish Krona, Euro, Japanese yen, Canadian dollar, Australian dollar, British pound, and Swiss franc. The Euro is 40% of the market, so the EUR/USD pair has a great amount of influence. With the move in the USD/JPY, there is a lot of influence there as well. The 84 level has been broken for the first time in three years, and this is significant.