Free Trial
JGB TECHS

(M2) Correction Extends

US STOCKS

Late Session Rebound

AUSSIE 10-YEAR TECHS

(M2) Corrective Cycle Remains In Play

AUSSIE 3-YEAR TECHS

(M2) Gains Still Considered Corrective

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
FOREX
  • The greenback spent the early part of Tuesday in a steady downtrend as Moderna's CEO poured some water on hopes that the current suite of vaccines would retain effectiveness in the face of new variants.
  • Just as wires reported the U.S. dollar was posting its biggest drop since early May, Fed Chair Powell shocked the markets by stating the FOMC can consider wrapping up the taper “a few months early” as well as commenting that it may be time to retire the word transitory regarding inflation.
  • The headlines culminated in an immediate spike in the dollar and an entire reversal of the day’s losses. The dollar index rallied a little over 1% amid the pressure in equities and front-end US yields shifting higher. EURUSD sold off from 1.1375 to 1.1236 and USDJPY rose back above the 1.13 mark to print highs at 1.1370.
  • Despite the powerful move higher for broad dollar indices, follow through was short-lived and momentum quickly subsided. The dollar index spent the next few hours grinding lower, back into negative territory. As of writing, the DXY resides down 0.25%.
  • Overall, there are mixed performances in G10 FX. With EURUSD and USDJPY broadly tracking the dollar index performance, risk/commodity tied currencies such as AUD and CAD have actually weakened around 0.5% against the greenback – continuing their November downtrends.
  • On the technical front it is worth pointing out that initial firm resistance in EURUSD at 1.1374, Nov 18 high and the 20-day EMA at 1.1383. have held at the first time of asking amid the volatile price action.
  • In emerging markets, USDTRY made another all-time-high at 13.6820 as reports emanated that a central bank executive director had left his post and Lira losses extended amid the late hit to global risk sentiment.
  • December kicks off with Australian Q3 GDP overnight before final European PMI prints. US ADP and Ism Manufacturing PMI headline the US docket ahead of Fridays NFP report.
MNI London Bureau | +44 020 3983 7893 | jack.lewis@marketnews.com
MNI London Bureau | +44 020 3983 7893 | jack.lewis@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.