- November 8, 2018
- Posted by: Joey Benedid
- Category: Market News
We have consolidated within the range of yesterday’s precipitous drop in the dollar index (DXY) as the market continues to digest the possible ramifications of the U.S. election results. So far participants are taking it as a signal to continue the risk rally and invest in global equities. While European concerns & potential trade wars still lurk in the back of everyone’s minds, they are currently not at the forefront of thought as the FOMC rate decision at 2PM EST will be the focus of the day. No rate hike is anticipated which will likely see the current markets trend continue.
USD/CAD weakness has been muted, comparatively speaking, as CAD has been sold aggressively against several crosses. Once these flows dissipate I would suggest we gravitate towards general dollar sentiment. Key levels remain 1.3050 below and 1.3150 above.