MNI BRIEF: Fed's Williams Says There's No Urgency To Cut Rates

MNI: US March Existing Home Sales Fell 4.3% To 4.19M

WILLIAMS: NOT BASE CASE TO RAISE RATES FURTHER

MNI BRIEF: Beijing Opposes U.S. Measures Against Chinese Steel

MNI China Daily Summary: Thursday, April 18

MNI BRIEF: M2 Growth To Slow On Weak Demand - PBOC's Zou

EZ/UK Bond Supply Calendar: EU, UK Synd W/C 22 Apr, BoE APF Mon

US EIA:NAT GAS STORAGE +50 BCF TO 2,333 BCF APR 12 WK

MNI: US NAR: MAR EXISTING HOME SALES 4.19M SAAR

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Firmer Greenback Sees EURUSD Back Below 1.0200

FOREX
  • Dollar indices took their cues from a surging USD/CNH on Monday largely in response to overnight PBOC action on rates and the lower-than-expected Chinese economic activity data. Bullish momentum has been picking up for USDCNH in late trade following the break of the July and August highs around 6.7950. The pair is now trading up 1.12% at 6.8130.
  • Dampened risk sentiment bolstered safe haven demand for the greenback and despite lower US yields and recovering stock indices throughout the US session, the USD Index looks set to post a 0.85% advance to start the week.
  • Despite AUD and NZD being the weakest major currencies and both falling around 1.3%, the more notable price action has been in the Euro.
  • In the process of sliding back below 1.0200, EURUSD has reversed the entirety of the post US CPI gains and has notably rejected the previous breakdown area between 1.0341/59 that had been a strong inflection point earlier this year. Additionally, the pullback highlights - for now - a failure to deliver a clear break of the bear channel resistance, currently at 1.0326. With the 100 pip grind lower on Monday, the pair also narrows the gap with the Aug 3 low at 1.0123.
  • The softer single currency was noted last Friday with strong moves lower for some Euro crosses and lingering uncertainties regarding Europe’s energy crisis may be exacerbating the renewed weakness.
  • The main beneficiary of lower US yields was understandably the Japanese Yen. USDJPY was well off the 13360 highs approaching the US Empire Manufacturing data, however, the softer prints sparked a swathe of selling down to fresh lows of 132.56. The firmer dollar overall has led to a strong bounce for the pair back to levels close to unchanged, however, significant weakness is noted in the likes of AUDJPY (-1.61%) and EURJPY (-1.12%) with the latter now trading 300 pips off last week’s highs.
  • Highlight for Tuesday’s APAC session will be the RBA minutes before UK employment data and Germany’s ZEW sentiment release. Canadian CPI will be the focus for the North American session with US housing starts and IP to also be released.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.