- January 30, 2018
- Posted by: Joey Benedid
- Category: Market News
The DXY continues to trade sideways but has turned lower in the European session as EUR & GBP lead the assault on the dollar with both currencies having 100+ point moves higher from their low water mark in Asian markets. Large USD sales are anticipated with month end equity portfolio rebalancing flows coming to market over the next 2 days since the S&P has posted gains close to 7% for the first month of 2018. BoE Governor Carney is due to testify at 10:30 AM EST before the House of Lords Economic Affairs Committee.
USD/CAD is hovering just above 1.2300 in this backdrop with month end rebalancing flows expected to surface here as well. Yesterday’s roundup press conference for NAFTA meetings in Montreal briefly inspired minor CAD weakness but market participants quickly lost interest as the length of these proceedings continues to mute reactions. When all is said & done we continue to be bound by 1.2280 & 1.2400 for the time being but flows over the next 2m days may provide timely USD buying opportunities.