The U.S. Dollar opened firm this morning against most majors and maintained its strength following a lower than expected consumer confidence number.
The U.S. Dollar opened firm this morning against most majors and maintained its strength following a lower than expected consumer confidence number. The reaction to this report shows that investors are concerned the global economic recovery will not be as robust as previously expected and that central banks are likely to keep in place their previous stimulus plans.
Less demand for higher risk assets is putting pressure on the EUR USD at the midsession. The main trend turned down late last week and traders seem content with pushing this market down to a key retracement zone at 1.4444.
The GBP USD is the lone currency pair showing a gain today. A short-covering rally has been triggered by a better than expected U.K. Retail Sales Report and a U.K. GDP Report showing that the economy contracted by less than expected. These reports and technically oversold conditions are helping to boost prices today.
Oversold conditions and the possible end to this month’s repatriation by Japanese companies are helping to support the USD JPY today. Technically this currency pair formed a closing price reversal top yesterday that was confirmed by today’s early sell-off.
Weaker equity markets and lower energy prices are putting pressure on the Canadian Dollar. Upside momentum is building in the USD CAD which could help launch a strong rally to 1.1124 over the near term.
The AUD USD and NZD USD are trading in a tight range under choppy conditions. Less demand for higher yielding assets is putting downside pressure on both of these markets while talk of possible interest rate hikes is providing the support.