As was widely expected, the People’s Bank of China (PBOC) left its 1-year medium-term lending facility (MLF) rate steady at 2.0%, BBH's FX analysts report.
There has been a slight increase in downward momentum; Australian Dollars (AUD) is expected to edge lower but is unlikely to reach 0.6315 vs the US Dollar (USD).
The US Dollar (USD) found firmer terrain at the start of the week and received some help in late European hours from President Trump’s claim that tariffs on Canada and Mexico are moving ahead.
Bank of England policymaker Swati Dhingra reiterated her dovish position yesterday by stressing that gradual rate cuts will still leave monetary policy in restrictive territory and weigh on the economy.
The German election rally in the euro did not last long, as markets were not pricing in a political risk premium before the vote and the key downside risks to the euro remain intact, ING's FX analyst Francesco Pesole notes.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, edges lower after registering gains in the previous two successive sessions, trading around 106.70 during the early European hours on Friday.
Bullish trades are valid above $71.63, targeting up to $75.54, while bearish trades remain active below $71.21, with downside targets extending to $66.18—and with tradeCompass identifying key price levels for strategic partial profit-taking along the way.
The GBP/USD pair gains ground after registering losses in the previous two successive sessions, trading around 1.2630 during the Asian session on Tuesday.
Silver (XAG/USD) builds on the previous day's modest bounce from the vicinity of the $32.00 mark, or a nearly one-week low, and gains some positive traction during the Asian session on Tuesday.
The USD/JPY rebounds off yearly lows of 148.85 and climbs past the 149.50 mark late during the North American session on Monday, despite overall US Dollar weakness across the board.
The Pound Sterling remains firm against the Greenback during the North American session on Monday yet retraced earlier gains after hitting a 9-week high of 1.2690 amid some US dollar weakness.
The EUR/USD pair started the week on a cautiously positive note, climbing toward recent highs before encountering strong resistance near the 100-day Simple Moving Average (SMA).
The USDCAD has seen the price action move above and below the 100/200 hour MAs with 1.4200 as the bottom support. Stay above is a tilt to the upside for the pair.
USD-bearish technical signals noted recently ('engulfing' patterns on the daily and weekly charts and a key reversal week on the 'regular' charts) remain the salient features of USD/CAD’s technical picture, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The German federal election result yielded the expected shift to the right—a win for the conservative CDU/CSU and gains for the far-right AfD, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar (USD) is little changed in quiet trade. Overnight price action saw the Euro (EUR) advance in response to the anticipated win for the center-right in Germany’s federal election but the result was largely as expected, Scotiabank's Chief FX Strategist Shaun Osborne notes.
EUR/GBP continues to hover around the 0.8300 mark with an empty domestic macro calendar for the week ahead, Danske Bank's FX analyst Jens Nærvig Pedersen reports.
Room for US Dollar (USD) to retest the 148.90 level vs Japanese Yen (JPY) before stabilisation is likely; significant support at 148.63 is unlikely to come into view.
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