FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Greenback Maintains Downward Bias Ahead of Critical Week

FOREX
  • The USD index is trading with a 0.82% decline on Monday, continuing the weaker price action seen post US employment and ISM data on Friday. Greenback weakness comes ahead of a critical week, with both the US CPI release as well as the beginning of the US earnings season to come.
  • Among the majors, the single currency is outperforming with EURUSD, extending its recovery to print fresh seven-month highs above 1.0750.
  • The Japanese Yen showed relative underperformance in European trade and was the sole currency falling against the USD. However, USDJPY’s bounce to 132.66 was short-lived before fresh selling emerged and the pair finds itself gravitating towards the overnight 131.30 lows approaching the APAC crossover.
    • Tech levels of note remain somewhat unchanged, with 133.73 marking the 20-day EMA. The key support and trigger for a resumption of the downtrend is 129.52, Jan 3 low. Initial key short-term resistance has been defined at 134.77.
  • Despite major equity indices reversing a significant portion of their gains throughout US trade, the likes of AUD, NZD and GBP have remained buoyant, gaining a tailwind from the renewed optimistic sentiment. AUD/USD has now traded close to 4% above last week's lows, keeping momentum tilted in favour of the bulls for now. Prices now hold within range of the $0.69 handle, which marks a sizeable expiry for Wednesday's NY cut, with A$1.6bln notional set to roll off.
  • Central bank governors on the speaker slate on Tuesday with Fed’s Powell, BOC’s Macklem and the BOJs Kuroda all participating in a panel discussion titled "Central bank independence and new risks: climate" at the Riksbank’s International Symposium on Central Bank Independence, in Stockholm.
  • The data focus is primarily on US CPI, scheduled on Thursday.
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.