Currency Markets Are Sleepless In Seattle |

US dollar trading in tight range

Currency markets traded sideways yesterday, with the remaining in tight ranges versus both developed and emerging currencies. The fall in US yields only really impacted , which has long been a pure rate differential play. Unsurprisingly, USD/JPY fell 0.37% to 109.35 overnight, edging lower to 109.20 today. It is now approaching support at 109.10, with this region having provided support since early May. Another leg down in US yields today should see USD/JPY breakthrough 109.00 on its way to 108.50 and potentially 107.00.

Otherwise, the dollar index was almost unchanged at 92.06. The dollar index remains mid-point between its breakout lower at 92.60 and structural support at 91.50, also home to its 100-day moving average. A break of either 91.50 or 92.60 will signal the dollar’s next directional move.

and remained steady at 1.1880 and 1.3895, as did the rest of the majors. remains anchored at 6.4650 with the , , and enjoying a night of relative calm. The most significant currencies likely to show any volatility in the next 24 hours are the and Dollars. The RBA policy was somewhat hawkish, as the central bank revised its economic forecasts upwards. RBA Governor Philip Lowe sounded positive about Covid, despite the current lockdowns, saying that “the experience to date has been that once virus outbreaks are contained, the economy bounces back quickly.”

On Wednesday, New Zealand releases key , and robust numbers could potentially spur a 100 point rally to 0.7100 for the kiwi. The RBNZ is widely expected to hike interest rates at its August meeting, and strong job numbers will further solidify a hike.

For now, currency markets look for all the world to have entered an extended wait-and-see mode ahead of Friday’s US data. Only a spike in Covid-19 cases in China this week is likely to lift that lethargy, which should favour the US dollar.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
usanewswall Governmental News Finance News

Source link

Back to top button