It’s a brand new week but we’re seeing the same old story play out as it has been in the past few weeks. The dollar is once again on the backfoot as risk sentiment cools off as well on the day. S&P 500 futures are down 0.9% but it’s a mere breather after nine straight days of gains. And even during that period, the dollar has struggled to keep its footing for the most part.
USD/JPY is now down 0.7% on the day to 143.95 while EUR/USD is up 0.3% to 1.1336 on the day. USD/CHF is also down 0.3% to 0.8243 after a brief jump earlier to 0.8270 following the Swiss inflation data. Meanwhile, AUD/USD is up 0.6% to 0.6483 and threatening a technical break to the upside above its 200-day moving average:
AUD/USD daily chart
The 0.6500 mark will see some offers in play but as things stand, dollar sentiment remains the prime driver of price action.
It’s early in the week but trade headlines will continue to dominate proceedings and drive further changes in the dollar through the week. The latest situation involving Taiwan is certainly keeping things interesting.
If we are to start crossing the boundaries of revaluation in currencies with regards to trade talks, it will have a lot of spillover effects. That especially when it comes to broader sentiment involving the dollar and emerging markets in Asia as well. That’s something to be mindful of in the days ahead.
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.
