MNI BRIEF: Japan Oct CGPI Rises 3.4% Y/Y, Import Prices Drop

MNI: US Consumers See Lower Inflation, Better Jobs - NY Fed

MNI BRIEF: Risks To Growth Evident, Await Dec Forecasts -Rehn

MNI BRIEF: Prolonged Tightening If Expectations Worsen - BCB

MNI China Daily Summary: Tuesday, November 12

MNI: PBOC Net Injects CNY107.2 Bln via OMO Tuesday

MNI: JAPAN OCT CORP GOODS PRICE INDEX +3.4% Y/Y; SEPT REV +3.1%

EZ/UK Bond Supply Calendar: IT, UK, DE, PO Auction Wednesday

MNI: US REDBOOK: NOV STORE SALES +4.8% V YR AGO MO

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: Bloomberg Dollar Index Rises to Highest Level Since November 2022

FOREX
EM BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Higher US yields and pressure on major equities have prompted an extension higher for the greenback on Tuesday, with the Bloomberg dollar index rising to the highest level in almost two years above 1280.
  • The greenback bid has been broad based across G10, however the higher beta currencies such as GBP, AUD and NZD have exhibited relative underperformance.
  • GBP (-1.03%) cements its position as the key laggard, with another pullback low at 1.2719 in late trade - this extends the losses on the break of the 200-dma earlier this morning, which had held as solid support back in August.
  • The greenback remains the key catalyst here, as markets shrugged off the higher-than-expected wages numbers out ahead of the UK open. Short-term support at 1.2799 has also given way, but 1.2665 is seen as a more significant level, marking the reversal low from August.
  • For EURUSD (-0.41%), we have also printed a new low on the year of 1.0595, and daily closes below the 1.06 mark will be carefully monitored in coming sessions. The pair remains in a clear downtrend and Monday’s bearish start to the week, plus Tuesday’s move lower, reinforces the current trend condition. Below here, notable levels include 1.0568, the Nov 2 2023 low and 1.0448, the Sep 3 2023 low and a key support.
  • The higher yields have also lent support to USDJPY (+0.72%) which makes a push towards the 155.00 handle and is yet to be negatively affected by the reversal lower for major US indices ahead of the APAC crossover.
  • US inflation data is the key focus for global markets on Wednesday. Analyst forecasts for October's CPI report show a central expectation that sequential inflation will come in relatively steady compared with September.
282 words

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.
  • Higher US yields and pressure on major equities have prompted an extension higher for the greenback on Tuesday, with the Bloomberg dollar index rising to the highest level in almost two years above 1280.
  • The greenback bid has been broad based across G10, however the higher beta currencies such as GBP, AUD and NZD have exhibited relative underperformance.
  • GBP (-1.03%) cements its position as the key laggard, with another pullback low at 1.2719 in late trade - this extends the losses on the break of the 200-dma earlier this morning, which had held as solid support back in August.
  • The greenback remains the key catalyst here, as markets shrugged off the higher-than-expected wages numbers out ahead of the UK open. Short-term support at 1.2799 has also given way, but 1.2665 is seen as a more significant level, marking the reversal low from August.
  • For EURUSD (-0.41%), we have also printed a new low on the year of 1.0595, and daily closes below the 1.06 mark will be carefully monitored in coming sessions. The pair remains in a clear downtrend and Monday’s bearish start to the week, plus Tuesday’s move lower, reinforces the current trend condition. Below here, notable levels include 1.0568, the Nov 2 2023 low and 1.0448, the Sep 3 2023 low and a key support.
  • The higher yields have also lent support to USDJPY (+0.72%) which makes a push towards the 155.00 handle and is yet to be negatively affected by the reversal lower for major US indices ahead of the APAC crossover.
  • US inflation data is the key focus for global markets on Wednesday. Analyst forecasts for October's CPI report show a central expectation that sequential inflation will come in relatively steady compared with September.