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Early Dollar Weakness Comes Alongside Equity Strength

FOREX
  • Early dollar weakness is accompanying general strength in equities at the open, with European cash markets universally higher and US stock futures indicating a positive open later today.
  • Greenback weakness has put the USD Index well through last Wednesday's lows to extend the pullback from the Thursday high to around 1.75%.
  • Main beneficiaries so far in FX space are GBP (ahead of key political and data risks later this week) and EUR, putting EUR/USD just shy of 1.0150 and the Jul 8 high of 1.0191 and the 20-day EMA at 1.0270. A break would highlight the possibility of a short-term correction from the base of the bear channel.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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