Market News

The DXY remains near its recent lows after posting an outside day yesterday which means it traded above the high & below the low of the previous day’s session.  Technically speaking this often indicates the end of a current trend which, in the DXY’s case, was lower.  With long term trend line support a mere

With no other significant data releases, speeches or meetings on tap today it’s all about the Bank of Canada announcement at 10AM EST.  Expectations are for a rate hike of 0.25% and the tone of their Monetary Policy Report, which will be released simultaneously, is going to be just as important as the rate decision. 

The DXY is holding above trend line support discussed yesterday with euro coming in 80 points off its highwater mark and the remainder of the G7 bloc trading within 50 point ranges in overseas sessions.  No significant data releases are scheduled until later in the week when Chinese GDP, U.S. building permits & UK retail

The dollar index (see attached chart) has taken a big hit over the last 4 trading days and currently sits just above long term trend support of 90.20.  These levels have not been seen since January 2015 and a firm break of 90.00 would lead to a test of the 84.80-85.50 area in future sessions. 

Yesterday’s U.S. PPI data, which usually does not garner a great deal of attention, came in under economists consensus which caught the attention of market participants resulting in a weaker dollar across the board.  Euro has surged above 1.2100 and Sterling above 1.3600 while the remainder of G7 currency pairs had a more muted reaction. 

Despite rising U.S. bond yields hitting fresh highs the U.S. dollar has sold off overnight after Bloomberg headlines reported Chinese officials view U.S. Treasuries as less attractive.  As the world’s largest foreign exchange reserve holder any negative change in policy regarding U.S Treasury purchases could be a massive blow to the U.S. dollar but it

With markets back to full participation after the holidays the U.S. dollar is marginally stronger against the G7 bloc from our close on Friday as we head into a week that has only a few major economic data points scheduled for release.  UK manufacturing data is out on Wednesday while Australian retail sales numbers come

Happy New Year to all & hope the holidays were enjoyable!   The dollar index took a significant hit over the last week of 2017 as a combination of thin markets, month/year end rebalancing flows and year end position squaring has taken a heavy toll on long USD positioning (see attached DXY chart).  The year