BER Currency News

BER Home/s

  1. Home
  2. Currency News
  3. Dollar Firms and Risk Aversion Fades

Dollar Firms and Risk Aversion Fades

Categories: AUD, CAD, CHF, EUR, GBP, Markets, News, USD

The US traded higher overnight and opened in New York with gains against all the majors except for the Japanese yen.  US Secretary of State Rex Tillerson managed to calm a hysterical anti-Trump media warning of nuclear war.

The Reserve Bank of New Zealand (RBNZ) got things going at the Asia open.  They left their policy rate unchanged at 1.75%, as expected.  The outlook for the Overnight Cash Rate (OCR) was not as doveish as expected.  That gave NZDUSD a boost to 0.7366. However, a line in the statement about the need for NZDUSD to adjust down was revisited by Assistant Governor John McDermott, in a speech afterwards.  NZDUSD dropped and kept on dropping.  It is trading in New York at 0.7260.

Aussie rallied early but succumbed to the broad US dollar strength.  AUDUSD traded in a 0.7868-0.7909 band and opened at the low end of that range.

USDJPY continued to suffer the lingering effects from risk aversion sparked by Trump and North Korea.  It is starting today’s New York session at the bottom of the 109.83-110.17 overnight range.

Strong US data releases and stretched positioning weighed on EURUSD, which traded in a 1.1705-1.1769 range.  It opened at 1.1711.  Traders ignored a Reuters survey that said 28 out of 50 economists survey expected the ECB to announce tapering plans in September

Sterling traded erratically in a 1.2953-1.3013 range.  It peaked in Asia and bottomed out in the European morning.  UK data was mixed.  The trade deficit widened to GBP 4.56 billion while Manufacturing Production and Industrial production beat the May numbers.  GBPUSD bounced back to 1.2995 after the data was released.

The FTSE is taking a pounding.  It is down 1.09% as global equity indices trim gains, in part because of geopolitical risks.

USDCAD has continued to move higher as the “short squeeze” continues.  Traders are ignoring WTI oil prices that are trading steadily, just under $50.00/barrel.

Today’s US data includes Producer Price Index (forecast 2.2%, y/y), and Initial Jobless Claims with a speech by New York Fed President William Dudley.   None of that will be important.  Traders will watch US equity market developments (futures are trading lower) and be alert for fresh developments in the North Korea/Trump saga.

USDCAD traders only have third tier, New House Price data to content with, leaving broad US dollar moves to dictate direction.

Overnight Ranges

10-Aug-17 Open-6 am EDT High Low
USDCAD 1.2725 1.2732 1.2693
EURUSD 1.1711 1.1769 1.1709
USDJPY 109.87 110.17 109.83
GBPUSD 1.2992 1.3013 1.2953
USDCHF 0.9660 0.9667 0.9631
AUDUSD 0.7880 0.7909 0.7868
NZDUSD 0.7270 0.7366 0.7254
USDMXN 17.9316 17.9611 17.9089
WTI   49.93 49.96 49.52


USDCAD Technical outlook:

The intraday USDCAD technicals are bullish while prices are trading above 1.2680 and probing resistance in the 1.2730 area, as this is being written.  A decisive break will extend gains to 1.2770.  A move above 1.2770 could get nasty as there isn’t much in the way of resistance until 1.2940, the level the currency was at before the Bank of Canada cut interest rates.  For today, USDCAD support is at 1.2680 and 1.2650.  Resistance is at 1.2730 and 1.2770

Today’s Range 1.2680-1.2750


Agility Forex Author: Agility Forex

Agility Forex is a Canadian cross-border payment specialist. They are Canadian owned, operated out of Vancouver and are registered with Fintrac, the Canadian government agency that oversees the money transfer industry. They specialize in all things Canadian Dollar and aim to provide the best service and best pricing on all Loonie cross rates. Visit Agility Forex.

You can get in touch with AgilityForex via email here or via the contact page.

Please note that the opinions of our authors are their own and do not reflect the opinion of BestExchangeRates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER logo BestExchangeRates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Level 2, 50 Bridge St, Sydney NSW 2000.

Disclaimer | Copyright | Privacy Statement

DISCLAIMER is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking BestExchangeRates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with BestExchangeRates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

BestExchangeRates may receive fees or other benefits in relation to activity on the BestExchangeRates website. BestExchangeRates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of BestExchangeRates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.