When trading Forex one has to keep in mind – everything is relative.
Weakness in a particular currency is only “seen” when that currency is compared / traded against another “specific currency” where the “relative” difference / change in value can be compared.
Hence the reason why forex is always traded in “pairs”.
Often we see the pair EUR/USD ( the Euro compared to the US Dollar ) and generally assume “dollar weakness or strength” based on this pair – and this pair alone, yet the dollar’s performance vs AUD ( The Australian Dollar) for example “could” be an entirely different story depending on specifics affecting AUD.
To “generalize” or to “assume” a given currencies direction without viewing it “specifically” against each and every individual currency would be naive , lazy – and likely quite costly.
The US Dollar has taken a considerable down turn “again” this morning – or has it?
Against the EUR sure ( as these two will always “see – saw” being the two most widely held reserve currencies on the planet ) but in all……….USD has barely budged against a pile of others.
The one thing that has moved here this morning is volatility. Volatility is up , up , up and away.
Spend the time ( it might actually take 5 minutes a day ) to get familiar with currencies, oil , stocks , gold etc in a “relative manner” and before long – you’ll be seeing things much more clearly.