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 Strength Extends, EURUSD Cracks Support

FOREX
  • The dollar index has made fresh three-week highs on Thursday, and has extending just shy of 1% to reach 1.0750 as we approach the APAC crossover. Greenback support was underpinned throughout the US session by stronger than expected Philly Fed data and lower initial jobless claims.
  • Notable declines in EUR and GBP as price action has gained momentum following the breaks of short-term supports at 1.0123 and 1.2004 respectively. Both currencies trade with steep 1% losses on the day, extending their gaps lower from last Friday's close.
    • 1.0007/0.9952 Low Jul 15 / 14 and the bear trigger remain the key levels for EURUSD on the downside.
  • Despite the move lower in US yields, the bid for the dollar spread across the currency space in late US trade, prompting USDJPY to spike through resistance at 135.50/58, promptly rising to a high of 135.90. The first level on the topside is 135.96, 61.8% retracement of the Jul 14 - Aug 2 downleg which has held for now. Above here targets 136.58, the Jul 28 high.
  • In emerging markets, the firmer greenback weighed on LatAm FX as well as the South African Rand. USDTRY looks set to close above 18.00 for the first time, following the CBRT’s surprise 100bp cut in the face off surging domestic inflation.
  • UK and Canadian retail sales data round off the week. There is no US data on Friday which should keep any FedSpeak and geopolitical developments in focus.
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.