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US dollar looking for direction

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The US dollar found the glow from yesterday’s strong Consumer Confidence report fade in overnight trading.  The greenback opened in New York with small losses against Yen and the commodity currency bloc and tiny gains vs Euro, Sterling and Swiss

Sterling hogged the spotlight. Theresa May fired off a signed letter to the European Union formally invoking Article 50.  GBPUSD extended Tuesday’s losses in Asia and dropped from 1.2461 to 1.2379.  That move was reversed in its entirety in Europe.

USDJPY ticked higher in Asia trading, extending gains made earlier, in New York, as concerns over Trumps healthcare bill failure faded and US data highlighted a strong economy. The rally was capped at 111.31 and USDJPY dropped to 111.03 at the New York open.

EURUSD traded in a 1.0778-1.0825 range, inching higher in Asia and then back down in Europe. European equity indices are higher and the FTSE is unchanged

Oil traders ignored yesterday’s end of day American Petroleum Institute report of a 1.9-million-barrel increase in crude inventories.  WTI rose from $48.31 to $48.82 as traders preferred to focus on a supply disruption from Libya and hopes that Opec extends production cuts.

USDCAD drifted lower in a narrow range. Losses were hampered by another doveish performance by Bank of Canada Governor Stephen Poloz.  Yesterday, he continued to stress the risks to the domestic economy while downplaying strong economic reports.

FX traders will be hard pressed to find fresh information and insight today. The only economic reports due today are US Pending Home Sales and EIA Weekly Crude change data.    FOMC policy comments will be covered by Federal Reserve Bank of Boston President Eric Rosengren and San Francisco President John Williams who will regale markets with their economic perspectives.  That suggests we are in for some choppy trading inside narrow ranges today.

 

Overnight Ranges

Open

 

29-Mar

High

Low

USDCAD 1.3366 1.3398 1.3358
EURUSD 1.0790 1.0825 1.0778
USDJPY 111.02 111.30 110.93
GBPUSD 1.2433 1.2461 1.2379
USDCHF 0.9938 0.9944 0.9915
AUDUSD 0.7654 0.7663 0.7631
NZDUSD 0.7020 0.7027 0.6995
USDMXN          18.9645 19.0326 18.9680
WTI   48.64 48.82 48.45
 

USDCAD Technical outlook:

The USDCAD technical picture is unchanged from Tuesday. They are bullish and looking for a break above 1.3405 to extend gains to 1.3535.  A break below 1.3320 will lead down to the 1.3240-60 area.  For today, USDCAD support is at 1.3420 and 1.3380.  Resistance is at 1.3405 and 1.3430

Today’s Range 1.3320-1.3390

Chart: USDCAD 4 hour

usdcad-4-hour-chart

 

 

 

 

 

 

 

Further Reading

 

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

Last update: 8 Jan, 2020

  

Posted to: News

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

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